Corporate Governance Reform (5) -M＆A Activities-
Negotiations between bidder and target firm can be problematic
March 12, 2009
Summary
◆Japan’s Ministry of Economy, Trade and Industry (METI), Financial Services Agency (FSA), and the Tokyo Stock Exchange (TSE) have set up investigative committees to examine the corporate governance of listed companies.
◆In some recent cases, the board of directors of the company targeted in a hostile takeover bid has apparently requested excessive amounts of information regarding post-acquisition business strategies.
◆The board’s impartiality has also been called into question, even in friendly takeovers.
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