The former Toshiba Corp unit said the decision is based on a conclusion drawn up by an independent committee that discussed Murakami's proposal.

A takeover by Murakami is likely to hurt corporate and shareholder value, the molding machine company said. Murakami last month launched a bid of up to $235 million for control of the company.

(Reporting by Makiko Yamazaki and Rocky Swift, editing by Louise Heavens)