Nireco Corp., a maker of high-tech measuring devices and controllers, has said its board has approved a motion to introduce a "poison pill" scheme to fend off hostile takeovers, becoming Japan's first company to do so.
The scheme calls for giving all shareholders listed as of March 31 this year free stock subscription warrants, which entitle them to buy new shares, at a ratio of two new shares for every existing share, the company said Monday.
Tokyo-based Nireco, which trades on the Jasdaq over-the-counter market, is taking the step before a would-be acquisition attempt emerges.
The term "poison pill" refers to a range of strategic moves a company targeted for takeover can take to make itself less attractive as an acquisition.
The decision will likely come under close scrutiny in both business and political circles as Livedoor Co. and Fuji Television Network Inc. continue their high-profile takeover battle for control of Nippon Broadcasting System Inc., which last week received a court injunction barring it from issuing share warrants to Fuji TV.