Toshiba Corp said on May 20, it had introduced a set of guidelines to defend itself from potential takeover attempts, becoming the latest Japanese company to guard against unwanted suitors. A series of takeover battles in Japan, including one between Fuji Television Network and Internet portal Livedoor Co this year, has made it urgent for managers to consider ways to protect their firms from becoming targets of hostile bids. Toshiba said any buyout attempts aiming for more than 20 percent of its voting rights would be thoroughly examined.
Japan's second-largest electronics conglomerate would take countermeasures if it was determined that such bids would hurt the interests of the company and its shareholders.
The countermeasures include such steps as share splits and issuance of share warrants and new shares, all of which would lower the unwanted suitor's stake in Toshiba.
Chip equipment maker Tokyo Electron Ltd said on Thursday it would propose to shareholders in June a plan that would authorise the company to lift the number of shares it is allowed to issue to 700 million from 300 million - a move that would help fend off a hostile takeover attempt.
Prior to the announcement, Toshiba shares closed up 1.38 percent at 440 yen, outperforming the Tokyo stock market's aelectric machinery index, which fell 0.28 percent.
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