Hokuetsu Paper Mills Ltd., Japan's sixth-largest paper firm, rejected a takeover bid Monday by Oji Paper Co., the country's No. 1 paper producer, sticking to its planned capital and business tieup with trading house Mitsubishi Corp.
Oji publicly proposed Sunday acquiring Hokuetsu on condition that the smaller company scrap a planned alliance with Mitsubishi in which Hokuetsu would issue 50 million new shares to the trading firm.
In rejecting the Oji bid, Hokuetsu underscored its intention to team up with Mitsubishi in a document submitted to Oji on Monday morning, Hokuetsu officials said.