Koito Bows to Pickens Demand, Raises Dividends by Two Yen

Koito Manufacturing Co., which has been resisting advances by T. Boone Pickens Jr., announced today that it has raised its dividend after a demand from the Texas oilman.

The auto parts maker said it has added an extra 2 yen, the equivalent of 1 cent, to its regular dividend of 8 yen a share for the fiscal year that ended March 31. Koito initially had rejected Pickens’ demand for a larger dividend.

Pickens became the largest stockholder in the company last year after buying a large holding from Kitaro Watanabe, the owner of Azabu Motors and other Japanese companies.

Japan’s Finance Ministry has ruled that Watanabe violated securities regulations by buying and reselling his shares to Pickens in too short a period and ordered him to pay Koito the 1.1 billion yen, or $6.9 million, he reportedly made in the transaction.

In his demand last September for increasing dividend payments by 3 yen a share, Pickens said the money received by the company from Watanabe should be distributed to its shareholders.

Koito management has viewed Pickens’ stock purchases as threatening and has refused his demands for a seat on its board and a chance to review its books.