Visiting U.S. Deputy Assistant Secretary of State Lawrence Greenwood expressed concern Friday about Japanese companies introducing measures to block hostile takeovers, saying they could block friendly merger attempts of foreign businesses.
Speaking to reporters in Tokyo, Greenwood said he believes there is "a bit of misunderstanding" among Japanese government, business and political circles over foreign firms trying to acquire Japanese businesses through hostile takeovers, because they usually use friendly tactics for mergers and acquisitions.
Greenwood said that if Japanese corporate managers cannot flexibly use measures to fend off hostile takeover bids, including the poison pill defense, then foreign direct investment in Japan will suffer.