Activist Urges Sanyo Shokai to Sell Itself to Mitsui & Co. (2)

US activist investor Sapphireterra Capital LLC said it has approached Sanyo Shokai Ltd. with a plan to sell itself to Mitsui & Co., one of its main shareholders.

The Chicago-based fund sent a letter to the management of the Japanese apparel manufacturer proposing the sale as one of two future options. The other requests inventory reductions and large-scale share buybacks.

Sanyo is “too small to pursue growth independently through acquisitions of strong brands or the launch of new brands,” Masakazu Hosomizu, Sapphireterra’s founder and chief investment officer, said in an interview. Merging with Mitsui, which has huge financial resources, ...