Oji Paper Co. has proposed freezing a hostile takeover bid for Hokuetsu Paper Mills Ltd. if Hokuetsu withdraws its planned issuance of new shares to Mitsubishi Corp., sources said Saturday.
Hokuetsu, the country's sixth-largest paper company, however, rejected the compromise proposal by Oji, the No. 1 Japanese paper producer, when the two firms held a top-level meeting Friday, the sources said.
Oji President Kazuhisa Shinoda and Chairman Shoichiro Suzuki met with Hokuetsu President Masaaki Miwa for the first direct talks between the two firms since Oji's tender offer announcement last Sunday, they said.