Japanese banks less reluctant to finance hostile takeovers, lobby chief says

Japanese banks have become less reluctant to finance hostile acquisitions because the government’s new takeover guidelines have shaken off the taboo on such deals, Japan’s new banking lobby chief said.

“Banks were previously worried about reputational risks” in helping unsolicited bids, Fukutome said in an interview. “But I believe new takeover guidelines from the industry ministry last year have helped lower psychological hurdles.” The Ministry of Economy Trade and Industry last year released new M&A guidelines aimed at cracking down on excessive defence tactics, removing a long-held stigma around unsolicited bids and spurring corporate takeovers.

Fukutome, who also heads the core banking arm of Sumitomo Mitsui Financial Group, said banks should consider unsolicited proposals if a deal would benefit the target company and help improve its long-term value.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Japanese Banks Will Get Earnings Bump From Deposits at BOJ(Bloomberg) -- Japanese banks will start earning billions of yen in interest on their deposits with the Bank of Japan after it scrapped negative rates. Most ...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Japanese banks less reluctant to finance hostile takeovers, lobby chief saysExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »