Citizen boosts its stake in Miyano.

In Japan, Citizen Holdings Co. (Nishi Tokyo) has decided to try to turn machine-tool builder Miyano Machinery Inc. (Ueda, Nagano Prefecture) into a consolidated subsidiary, via a friendly take-over bid. The diversified watch-maker group's annual machine-tool sales would total [yen] 57-billion (about $518-million), including Miyano's and wholly-owned Citizen Machinery Inc.'s (Miyota, Nagano Pref.)

Citizen is spending [yen] 6,085-million (about $55-million) to buy 20,283,000 shares--equivalent to 34.7% of Miyano's stock--at [yen] 300 yen a share. (Its stock closed at [yen] 185 yen [or $1.68] a share on the Tokyo Stock Exchange on August 21, when the plans first were announced.) This will raise its interest in Miyano from the current 29.9% to 64.6%. The company hired Nomura Securities Co. (Tokyo) as adviser and manager for the additional stock acquisition.

Despite the change of its status, Miyano will maintain its own brand in Japan and overseas, while its shares will be continued to be traded on TSE, Citizen said. Plans call for Citizen to dispatch a maximum of three officials to serve on Miyano's board, as three parties, including Citizen Machinery, agreed.

From our Asian correspondent.