2003 JAPAN LAW: TAKE OVER BIDS
Keywords: Takeover Bids, TOB, Securities Exchange Law, Corporate Law
Copyright 2004. All rights reserved Attorney Roderick H. Seeman
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The Financial Services Agency has announced that it plans to seek legislation
easing regulations with respect to take-over-bids (TOB) by revising the Securities
Exchange Law hopefully to be implemented during fiscal 2004. As the formalities
of launching a TOB are quite burdensome, requiring reports to shareholders,
registering with government authorities and setting out a period for purchasing
shares, many have complained about the expense involved and the inflexibility
in the procedures. Thus the main point of the revision would be changing
the level at which a TOB must be launched from acquiring 1/3 of a company’s
shares to just under 50% of a company’s shares.