The Tokyo District Court on Wednesday blocked Nireco Corp. from including a poison pill strategy in the company's measures to defend against hostile takeovers.
The court said the ploy to issue share warrants to dilute stock "could cause unforeseen damage" to current Nireco shareholders, backing an injunction request filed by Cayman Island-based SFP Value Realization Master Fund Ltd., which has a 6.8 percent stake.
The poison pill refers to a range of strategic moves a company targeted for takeover can make to become less attractive for acquisition.