JAPAN PREPARES FOR A TAKEOVER SPLURGE Contrary to received wisdom,
mergers and acquisitions have long been a feature of the Japanese
business scene. The local business landscape is littered with the
debris of takeover coups -- some successful, others not -- by predatory
Japanese companies. Predictably, no foreign company has so far
succeeded in taking over a listed Japanese corporation. The recent bid
by the Trafalgar Holdings and Glen International consortium to acquire
Minebea -- an aggressive Japanese ball bearing and electronics
manufacturer -- illustrates graphically some of the barriers which must
be overcome to succeed in such a venture.
Trafalgar/Glen's takeover strategy was to accumulate Minebea
warrants and convertible bonds issued in the Euromarkets. While this
tactic allowed the consortium to corner a hypothetical 23% stake of
Minebea's outstanding shares without attracting much attention,
neither warrants nor convertible bonds represent ownership until
converted to equity. It was here that the foreign takeover bid ran
aground.
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