News Column

Capcom shareholders reject renewing takeover defense measure

June 16, 2014

Shareholders in Capcom Co. voted down on Monday a proposal to extend its defense measure against hostile takeovers that had been put in place in 2008 and renewed every two years since, the company said.

It is rare for renewal of such a continuation proposal to be rejected by shareholders in Japan, according to the Daiwa Institute of Research.

At the general shareholders' meeting in Osaka, western Japan, the video game maker's management proposed that the defense measure be extended for another two years but it was rejected by a majority vote.

Many foreign investors, who account for about 45 percent of Capcom's shareholder base, are believed to have voted against the measure for fear it would block any buyout proposals that could help raise the corporate value.

Capcom in 2008 put in place the defense measure, under which existing shareholders will be issued extra shares to sustain majority control of the company in case a hostile buyer tries to acquire more than 20 percent of shares without the company's consent.

About 500 listed companies in Japan have instituted defense measures against hostile takeovers, compared with 574 as of 2008, according to Daiwa Institute.

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Source: Japan Economic Newswire

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