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

Negotiations between bidder and target firm can be problematic




◆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.