In the weeks before the Corporate Law took effect Monday, Izumiya Co. announced measures to prevent hostile takeovers, expecting the law's provisions to encourage mergers and acquisitions.
Even before the law debuted, a number of high-profile hostile takeover bids attracted media attention, including Livedoor Co.'s attempt to buy Nippon Broadcasting System Inc. and the effort to acquire Hanshin Electric Railway Co. by M&A Consulting Inc., an investment fund led by Yoshiaki Murakami.
Izumiya, a midsize supermarket chain based in Osaka, has come up with a poison pill to deter unwanted buyers. It would empower the company to give existing shareholders the right to acquire new shares if a corporate raider tries to buy more than 20 percent of the firm's shares. If exercised, this defense would dilute the voting rights of a hostile bidder by as much as 50 percent.