Shinsei poison pill is acid test for Tokyo reforms

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Shinsei Bank wants to thwart online rival SBI’s push for effective control by diluting the unwelcome bidder’s stake. Voting it down is a no-brainer, not least for the government, says JennHughes13

Shinsei Bank on Sept. 17 said it would seek shareholder backing to issue stock warrants with the express aim of thwarting a bid for control of the lender by online financial group SBI holdings.

On Sept. 9 SBI offered a 39% premium, or 2000 yen per share, to take its holding to 48% from its current 20.3% stake. The larger holding would give it effective power to run Shinsei without needing the formal approval required if it were to own more than 50% of the stock. In response to Shinsei’s poison pill plans, SBI said in a statement that it was considering filing a court injunction and also making a shareholder proposal for a board reshuffle.The Shinsei Bank logo is pictured at the lobby of the bank in Tokyo October 22, 2010. REUTERS/Yuriko Nakao - GM1E6AM1DDR01

 

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