Corporate Governance Reform (5) -M&A Activities-

Negotiations between bidder and target firm can be problematic


March 12, 2009

  • Yutaka Suzuki


◆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.

Daiwa Institute of Research Ltd. reserves all copyrights of this content.
Copyright permission of Daiwa Institute of Research Ltd. is required in case of any reprint, translation, adaptation or abridgment under the copyright law. It is illegal to reprint, translate, adapt, or abridge this material without the permission of Daiwa Institute of Research Ltd., and to quote this material represents a failure to abide by this act. Legal action may be taken for any copyright infringements. The organization name and title of the author described above are as of today.