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BUSINESS NEWS: Sapporo strengthens poison-pill defences
Sapporo holdings has further ramped up its defences against future unsolicited takeover attempts.
In February 2006, the company adopted an anti-takeover measure requiring any investor owning at least 20 of its shares to disclose information. Should any major shareholder refuse to comply with this measure, the brewer can issue stock warrants to investors other than the potential acquirer, thereby diluting the acquirer’s shares.
Last month, Sapporo introduced an additional measure so that it can respond to a takeover attempt even more quickly. This was done by shortening the period before it can issue the warrants from 25 days to 10 days.
The decision came after the brewer’s largest shareholder Steel Partners, a US hedge fund, made an unsolicited attempt to takeover Myojo, a Japanese noodle-maker. The hedge fund has an 18.6% share in Sapporo.
As well as its beer and beverage businesses, Sapporo has attractive real-estate assets that have benefited from the property boom in Tokyo.
© db January 2007