Tokyo Stock Exchange President Taizo Nishimuro indicated Tuesday the bourse will consider punishing Hokuetsu Paper Mills Ltd. for insufficient information disclosure.
Hokuetsu Paper's disclosure of information on introducing measures to counter a potential hostile takeover bid by Oji Paper Co. was not proper, Nishimuro told a news conference.
Nishimuro said that when Hokuetsu talked to the TSE about introducing antitakeover measures, it did not reveal that Oji had made a takeover proposal, he said.
"It is very regrettable that the TSE was not informed of such an important fact," Nishimuro said.
The sixth-largest domestic paper company has rejected a takeover bid by Oji, the country's No. 1 paper producer, saying Monday it would continue to pursue a planned capital and business tieup with Mitsubishi Corp.
The TSE is expected to take disciplinary steps against Hokuetsu, such as requiring the company to report measures to the bourse to improve its information disclosure.
Oji privately proposed a business integration to Hokuetsu on July 3. Without making public the takeover proposal, Hokuetsu announced on July 19 the introduction of antitakeover measures, including the issuance of equity warrants.