(Updates to add comment from Kakaku.com and LY Corp.)
U.S. investment firm Bain Capital and internet company LY Corp. (TYO:4689) plan to submit a binding bid for comparison shopping website operator Kakaku.com Inc. (TYO:2371), Bloomberg News reported Friday, citing people familiar with the matter.
The bid would challenge Swedish private equity firm EQT AB's 3,000 yen-per-share tender offer, which values Kakaku.com at about 595 billion yen, according to the report.
Bain Capital and LY are expected to raise their offer above EQT's bid. The two companies previously offered 3,232 yen per share in May. Discussions are ongoing, and no final decision has been made, the report said.
Responding to, Kakaku.com said the Bloomberg report was not based on any announcement by the company. LY Corp. declined to comment.
Meanwhile, Bain Capital did not immediately reply to' request for comment.
Shares of Kakaku.com rose nearly 2%, while those of LY Corp. gained about 4% in Monday morning trade.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)