Kobayashi (pictured) said his company was "encouraged" by news of the deal, adding that both companies would use the coming three years to co-ordinate "sales, service, marketing, R&D, and manufacturing and logistics operations for all relevant business areas".

Meanwhile, shares in Océ are trading at a slight premium to the €8.60 a share offer from Canon, indicating the market anticipates Canon may be forced to raise its bid.

Last week, Orbis, a 10% shareholder in Océ, said that it believed the bid "significantly undervalued" Océ, despite a general impression that the bid was a strong one in order to deter a rival bid from Konica Minolta.

Canon requires acceptance from 85% of Océ's shareholders to complete a deal, so Orbis would have to persuade other investors to hold out for a higher bid in order to succesfully oppose the move. However, the 2 cent premium suggests that should an offer come in, it will only be marginally higher than Canon's current bid.

With Konica Minolta having ruled itself out of the running, a bid from a rival is unlikely to emerge. Even so, Canon may raise its bid in order to satisfy Orbis and ensure a smooth transaction.

Read the original article at www.printweek.com.

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