Japan Panel Reviewing Tender Offer Rules

Tokyo, March 3 (Jiji Press)--The Japanese government's Financial System Council is reviewing rules on tender offers following an increase in unsolicited takeover bids in recent years.

The Financial Services Agency panel, which advises the prime minister, is examining the idea of obliging buyers to announce tender offers, including purchase periods and prices, even if they are buying shares in target companies on the market.

Under the current financial instruments and exchange law, buyers are required to make such announcements when acquiring more than one-third of shares outside the market. The requirement does not cover buyers collecting shares on the market.

The council began its discussions Thursday in hopes of making share transactions related to corporate acquisitions more transparent.

The envisioned change would mark the first major amendment of the tender offer rules since 2006, prompted by an attempt by now-defunct internet company Livedoor Co. to take over radio broadcaster Nippon Broadcasting System Inc.

[Copyright The Jiji Press, Ltd.]