Bain Capital and LY Corp. are likely to submit a binding bid for Kakaku.com next week, setting up a direct challenge to EQT AB's tender offer for the Japanese price-comparison site.
¥595 billion is the value of EQT's existing offer, or about $3.7 billion, giving Bain and SoftBank affiliate LY a clear price benchmark in the contest.
Due diligence by Bain and LY is already underway, according to people familiar with the matter, indicating the rival proposal is moving from exploratory talks to a formal stage.
The expected bid would intensify a takeover battle for Tokyo-based Kakaku, with the next week's filing likely to determine whether EQT must improve terms.