Toshiba Machine Shareholders OK Defense against Takeover Bid

Economy

Numazu, Shizuoka Pref., March 27 (Jiji Press)--Shareholders of Toshiba Machine Co. <6104> on Friday approved defense measures against a hostile takeover bid by a fund linked to Japanese activist investor Yoshiaki Murakami.

The measures, adopted at an extraordinary shareholders meeting in Numazu, Shizuoka Prefecture, central Japan, allow Toshiba Machine to issue share warrants to its existing shareholders for free.

The warrants will carry discriminatory exercise conditions against the Murakami-linked fund, City Index Eleventh Co., allowing Toshiba Machine to dilute the fund's equity stake.

As the measures were approved at the day's meeting, City Index Eleventh plans to withdraw its tender offer for Toshiba Machine, launched in late January to secure a stake of over 43 pct.

City Index Eleventh initially demanded that Toshiba Machine buy back some 12 billion yen of its own shares, seeing the company's massive internal reserves as a problem.

[Copyright The Jiji Press, Ltd.]

Jiji Press