Mergers & Acquisitions

A Bitter Japanese Poison Pill


Japan’s Supreme Court has affirmed a company’s right to mount a poison-pill defense to a corporate takeover.

The court ruled for Bull-Dog Sauce Co. in a suit by a hedge fund trying take over the company, the Wall Street Journal (sub. req.) reports. In poison-pill plans, the targeted company makes the takeover more expensive by issuing more stock.

Bull-Dog makes “a Worcester sauce Japanese love to pour over pork cutlets,” Reuters reports. The hedge fund, Steel Partners, is pressing ahead with its buyout bid, even though its current 10 percent stake in the company will drop to 3 percent after the poison pill takes effect.

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