The takeover bid for TOB = shares of Tokyo Rope, a manufacturer of wire ropes and other products carried out by Nippon Steel, the largest steel company, reveals that the management of Tokyo Rope is opposed and will develop into a hostile takeover became.
Tokyo Rope is a manufacturer of wire ropes used for cranes and elevators, and Nippon Steel holds a 9.9% stake and is the largest shareholder.
However, as the business performance continues to be sluggish, Nippon Steel has launched a takeover bid for TOB = shares from last month with the aim of increasing its shareholding ratio to a maximum of 19.9%.
In response, Tokyo Rope revealed at a board meeting on the 4th that all nine directors, including outside directors, agreed to oppose the takeover bid of Nippon Steel.
The reason for the opposition is that there is no certainty that management independence will be maintained, and there is concern that Nippon Steel's influence will increase.
As a result, the TOB by Nippon Steel has evolved into a hostile takeover.