Nidec Withdraws $1.8 Billion Hostile Bid for Makino Milling (2)

Nidec Corp. is withdrawing a ¥257 billion ($1.8 billion) unsolicited tender offer for machine tool maker Makino Milling Machine Co., bowing to strong resistance from its target.

Makino had previously threatened to block the takeover by granting stock acquisition rights to existing shareholders. Such a move would deprive the deal of economic sense and could hurt Nidec, the Kyoto-based company said in a statement Thursday. Makino’s stock dived as much as 21% Friday, the biggest intraday fall on record.

The acquisitive maker of precision motors had sought an injunction against Makino Milling, but that was denied by the Tokyo ...