TV Tokyo Corp. has adopted a package of measures to defend itself against hostile takeover bids in light of a large stake held by a former lawmaker.
The measures are aimed at enhancing TV Tokyo's corporate value and shareholder benefits, the nation's No. 5 network said.
An independent panel of three or more people will decide when TV Tokyo should consider a bid hostile and activate the defensive measures, which include a poison pill that issues equity warrants to dilute a buyer's target stake. The panel consists of three members, including Kunihiro Matsuo, a former attorney general, and Hiroshi Araki, a former Tokyo Electric Power Co. president.
Any buyer that wants 20 percent or more of the broadcaster will have to give the panel a report on the reasons for acquiring the stake and other related information.
TV Tokyo said it has already instituted the measures and will ask its shareholders at a general meeting June 22 to approve them for a three-year period.
Eitaro Itoyama, a former member of the House of Representatives, with his company held 13.61 percent of TV Tokyo's outstanding shares as of March 31.
Itoyama is lobbying shareholders to reject the reappointment of TV Tokyo President Sadahiko Sugaya at the meeting, because of problems related to the company's programming and other areas.
TV Tokyo said Tuesday it will ask shareholders to approve making Sugaya chairman of the board with the right to represent the company and appointing Senior Managing Director Masayuki Shimada president.