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Hostile Takeover Battle in Japan: Fuji TV vs Livedoor for NBS    
 
Product Ref: 06/287C Company: Fuji Television Network, Inc

Product Type: Case Industry: Media

Related Product(s): Teaching Note
Authors: Mitsuru Misawa   
In February 2005, the top management of Fuji Television Network, Inc. (Fuji TV), one of Japan's leading media conglomerates, was informed that a small IT-related company, Livedoor Co. (Livedoor), had bought 35% of shares in Nippon Broadcasting System, Inc. (NBS) with the help of Lehman Brothers, a US-based financial services firm. Fuji TV owned 12.39% of NBS shares and was in the process of acquiring it. What complicated the issue was that NBS's main asset was its 22.5% stake in Fuji TV. The news came as a shock because Livedoor had acquired NBS's shares through off-floor trading at the Tokyo Stock Exchange. This was prohibited by the Securities Exchange Law, unless done for the purposes of a takeover bid. Fuji TV's top management had to take effective measures to counter Livedoor's move. This would be done with the assistance of the legal counselors and planning department who studied which legal and effective actions Fuji TV could take against Livedoor, and calculated the corporate value of NBS using both American and Japanese methods.
Functional Area : Accounting & Control
Finance & Investments
Social Enterprises & Ethics
Strategy & General Management

Issues: The case addresses issues of strategic fit between the bidder and the target, target performance, valuation, financing decisions, and whether and how the target's anti-takeover moves might affect outcomes in the battle for corporate control.
Length: Text: 9 pages
Exhibits: 21 pages
Country: Japan

Pub. Year: 2006 Level of Difficulty: 3
         
This product type is available in the following language(s):      English   Simplified Chinese
         
Related Information: N/A
 
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