Shinsei Bank is considering a measure to fend off an attempt by major Japanese online financial service company SBI Holdings Inc. to take control of the bank, informed sources said Tuesday.
Shinsei Bank is planning to issue for free stock-purchase warrants that can be exercised by existing shareholders other than SBI in order to lower the company’s equity stake in the bank, according to the sources.
The major Japanese bank is expected to make efforts for an extension of the deadline of SBI’s tender offer until it submits the takeover defense proposal to an extraordinary meeting of shareholders.
Shinsei Bank board members are expected to decide this week at the earliest to introduce the takeover defense measure, which will be invoked by a resolution at the shareholders’ meeting.
The bank said that it has not received any prior notice from SBI about the tender offer, which was launched Friday.
It is apparently hoping to extend the offer’s deadline, currently set for Oct. 25, to scrutinize the SBI move.
The bank also plans to send a letter to SBI to ask chiefly about its planned measures to improve the bank’s value.
SBI announced Thursday a tender offer for Shinsei Bank, aiming to raise its equity stake in the bank from about 20% currently to up to 48% and make the bank a consolidated subsidiary.
Shinsei Bank has sought help from financial and legal advisers to discuss action against the move.
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