Tokyo Broadcasting System Inc. said Wednesday it will issue stock purchase warrants worth 600 million yen to a wholly owned subsidiary of its financial adviser, Nikko Cordial Corp., as a means of tightening its defenses against hostile takeover attempts.
The warrants, to be issued to Nikko Principal Investments Japan Ltd. through a third-party allotment of new shares, can be converted to 20 million common shares for 4,000 yen each, the commercial television broadcaster said.
The announcement was made in the wake of a high-profile battle between Internet firm Livedoor Co. and Fuji Television Network Inc. for control of radio company Nippon Broadcasting System Inc.
The warrants will endow Nikko Principal Investments with the exclusive right to purchase new shares in TBS between June 6, 2005, and June 30, 2007.
The scheme, if fully carried out, will make the Nikko Cordial subsidiary the biggest shareholder of TBS, with a 21.2 percent stake, TBS said.
The TBS action follows similar moves by other major companies, including Matsushita Electric Industrial Co. and Toshiba Corp. NEC Corp. is also considering using the same self-defense tactic.