Injunction Plea against Tokyo Kikai Takeover Defense Rejected
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Tokyo, Oct. 29 (Jiji Press)--Tokyo District Court rejected on Friday investment company Asia Development Capital Co.'s <9318> request for a temporary injunction against a takeover defense measure by Tokyo Kikai Seisakusho Ltd. <6335>.
The court decision came after the measure countering Asia Development Capital's bid to take control of the newspaper printing press maker was approved at Tokyo Kikai's extraordinary general shareholders' meeting last week. The plan was put to a vote of shareholders excluding the Asia Development Capital side.
Calling the ruling an appropriate judgment, Tokyo Kikai said it will go ahead with its plans to invoke the takeover defense measure.
Under the measure, Tokyo Kikai will issue, free of charge, warrants that are convertible to common shares to shareholders excluding Asia Development Capital, in order to dilute the equity ownership of the investment company, which currently holds a stake of a little less than 40 pct in Tokyo Kikai.
Asia Development Capital reacted angrily to the ruling, saying it impairs the transparency of the securities market, shakes the foundation of the principle of shareholder majority decisions and undermines confidence in the legal structures governing companies. The company said it will swiftly file a complaint against the ruling.
[Copyright The Jiji Press, Ltd.]