Hostile takeover of the hottest paper industry bri

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Paper industry: hostile takeover brings new atmosphere to Japanese enterprises

Oji Paper nearly announced on Tuesday that its efforts to acquire Hokuetsu paper mills were stillborn. A month ago, the hostile takeover offer made by Prince paper to North Vietnam paper opened a precedent in the history of mergers and acquisitions of Japanese blue chip enterprises

analysts believe that even if this time fails, the success of the hostile takeover in Japan will come sooner or later

the acquisition war began earlier this year when Prince paper tried to persuade its smaller rival North Vietnam paper to agree to a merger. In terms of sales, Prince paper is the largest paper maker in Japan, while North Vietnam paper ranks sixth, but the production process of North Vietnam paper is more advanced than Prince paper. Due to the stagnant demand for Japanese paper and the pressure on pricing caused by China's imported paper products, Prince paper believes that after the merger, both sides can better control the price and cost

however, the management of North Vietnam paper rejected the "goodwill" of Prince paper, saying that the company and its shareholders believed that maintaining independence was the better choice. As a result, earlier this month, Prince paper made a US $1.4 billion hostile takeover offer, while North Vietnam paper United its allies to resist it. Enterprises holding more than one-third of the shares of North Vietnam paper have said that they will not sell shares to Prince paper

The deadline for the hostile takeover offer is next Monday. Kazuhisa Shinoda, President of few waste plastic recycling plants made by Prince paper, admitted at the press conference that the possibility of failing to reach an agreement was very high

jonathan, strategist at KBC financial products? Jonathan Allum said, "Prince paper and other enterprises began to see hostile takeover as a legal way to do business. These partially fluorinated polymers also provide a legal way to use the required high purity and solubility with typical solvents such as acetyl 3-butyl citrate (ATBC), N-methyl pyrrolidone (NMP), glyceryl 3-acetate (GTA), 2-butyl phthalate (DBP) and 2-octyl phthalate (DOP) in the tips process. Sooner or later, the hostile takeover will date to succeed in Japan."

In the past, hostile takeover was considered by many investors, even those private investors who tried to make profits quickly, as a shameless act of the jungle. There are also some hostile takeovers that lead to bad relations between the leaders of relevant enterprises

last year, livedoor Co., an Internet giant, made a hostile takeover of a radio operator and grabbed more than 50% of the latter's shares in large stock transactions on the open market. Japanese business leaders made fierce attacks on livedo's radical behavior of working reliably or

in terms of hostile takeover, the move of Prince paper seems to be a mild action taken to achieve corporate marriage

the number of Japanese paper-making enterprises is too large, and the time for industry integration is ripe. Unlike the world-class industries such as automobiles and mechanical tools, many industries in Japan (such as retail and pharmaceutical) have a situation similar to that of paper industry

John, strategist of Nikko asset management? John Vail said that the Japanese business community knows that in order to survive the tide of globalization, it must strengthen its strength. Moreover, the prince's paper-making adopts the method of courtesy before soldiers, in order to break the old idea that hostile takeover is "big fish eat small fish"

the management of Prince paper has been in contact with the management of North Vietnam paper for several months. In March this year, shouchiro Suzuki, the then president of Prince paper, contacted Masaaki Miwa, the president of North Vietnam paper, to discuss the alliance. He also sent three executives to meet with the high-level officials of North Vietnam paper making, who explained the reason to the latter

Takashi Ishida, executive director of Prince paper, said, "we told them that we had no intention of conquering them, but the situation was urgent, and both sides must integrate capital."

after the good intention was rejected by North Vietnam paper, Prince paper announced to purchase the shares of the former at a premium of 34%. Prince paper also issued a statement detailing the benefits of the merger to both sides. In addition, Prince paper also published advertisements in the local newspapers where the North Vietnam paper factory is located that there will be no layoffs to appease people

Japanese business circles applauded the above-mentioned moves of Prince paper, and believed that Prince paper set a model of hostile takeover

however, some analysts believe that the acquisition strategy of Prince paper has had an adverse impact on its acquisition. The initial Huairou policy provided time for North Vietnam to organize a counterattack. North Vietnam paper took the opportunity to sell a large number of new shares at a discount to Mitsubishi Corp. Jinan new era Gold Testing Instrument Co., Ltd. Jinan experimental machine factory, while Mitsubishi, which has a good relationship with North Vietnam paper, has said that it will not sell shares to Prince paper

Prince paper executives, including Ishida, admitted that their actions were too slow. Ishida said earlier this month, "tactically speaking, our approach is not wise."

Ken, a lawyer in M & A at Morrison; Foerster LLP? Ken Siegel said that since a hostile takeover offer has been made, decisive measures should be taken, otherwise, don't make an offer at all

reprinted from: Wall Street Chinese network

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