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Pentax, Hoya Merger On The Ropes

Tokyo — A merger between Pentax and semiconductor manufacturer Hoya was rebuffed by Pentax over a disagreement over the deal’s terms.

As a result of the termination, Pentax’s president, Fumio Urano, resigned. He will be replaced by Takashi Watanuki, a Pentax board member and opponent of the merger under its current terms.

According to published reports, the disagreement centered over the ratio of shares to change hands between the two companies. The merger had been opposed by six of eight Pentax board members — including Watanuki — over governance issues, and the company’s shareholders were also upset with the terms of the stock swap.

The merger, announced last December, was set for October this year. Board members from both firms will meet again to attempt to renegotiate the deal. Hoya has proposed a tender offer as opposed to a stock trade.