P. M. BRIEFING : Japanese Auto-Parts Firm Rejects Pickens’ Bid for Seats on Board

Japanese auto-parts maker Koito Manufacturing today formally rejected a request by U.S. corporate raider T. Boone Pickens for seats on the Koito board, saying it doubts that he is the real owner of a large stake in the company.

“There is growing speculation that your company is not truly taking on the investment risk,” Koito said in a letter sent to Pickens today and later released to the press.

Pickens may have entered into a variety of options, repurchase or collateral arrangements when buying a 20.2% stake in Koito from Azabu Motors Ltd., a spokesman for Koito said.

“We believe we have a right to an accurate rendering of the truth,” the letter said.

In a letter to Koito President Takao Matsuura, Pickens had asked the Koito board to nominate three executives of his private investment firm, Boone Co. of Texas, as directors of the company, which makes automotive lighting.

Some industry analysts have said it appears that Pickens is attempting a classic, U.S.-style corporate raid in Japan, causing alarm in the tightly knit Japanese business community.