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3 Japan Steelmakers Unveil Joint Takeover-Defense Plan

Posted on: Wednesday, 29 March 2006, 18:00 CST

Tokyo, March 29 (Jiji Press)--Nippon Steel Corp. , Sumitomo Metal Industries Ltd. and Kobe Steel Ltd. said Wednesday they have signed an agreement to consider steps to jointly fend off hostile takeover bids.

The three major Japanese steelmakers, which already have business and capital tie-ups, will devise specific defense measures to prepare for the possibility of one of them becoming a takeover target.

At present, the three firms own minor stakes of 0.41 pct to 5.01 pct in each another.

Separately, Nippon Steel, Japan's biggest steelmaker, announced its own takeover defense plan, which allows its board to decide to issue share-buying warrants to all shareholders if their common interest is clearly seen to be undermined by an unsolicited bid.

If the firm is uncertain whether such a bid might harm the shareholders' interest, Nippon Steel will seek their judgment on whether to issue the warrants by holding a vote at a shareholders' meeting or through a postal ballot.

The Japanese steelmakers are moving to prepare takeover defense measures at a time when the industry is undergoing consolidation on a global scale.

Recently, Mittal Steel Co. of the Netherlands, the world's top steelmaker, has launched a hostile bid for Arcelor SA of Luxemburg, the second largest.END

Source: Jiji Press English News Service

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