Steel Partners sets sights on Japanese firm

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The fund is already the largest shareholder with an 18.7 per cent stake in Noritz, but plans to become the dominant force by acquiring at least 50.1 per cent of the firm's shares on a voluntary basis.

It said it made the offer "as a last resort" following Noritz's failure to meet operating profit plans. The company's share value has also fallen by 35 per cent in the past year alone.

Explaining its concerns about the performance of the company, Steel Partners said that Noritz had "not given us any reason to believe that they are taking appropriate steps to ensure that such deterioration will not continue well into the future".

As a major stakeholder the company has deemed that "the status quo is not acceptable" and plans to take control before selling unprofitable businesses and tackling poor sales and margins.

Noritz, a leading producer of household water heaters, responded by saying it would discuss the offer. Unsolicited takeovers are rare in Japan - where they are widely seen as a ruthless Western practice.