Capcom Shareholders Reject ‘Takeover Defense Plan’

Capcom shareholders have rejected a plan that would have stopped someone from presenting an unsolicited acquisition bid. At the company's annual meeting today, shareholders opted not to renew a "takeover defense plan" that had been in place since 2008, and had been renewed every two years since.

The 25-page plan outlined a detailed and time consuming process through which potential suitors could seek proper approval from Capcom's board of directors. The plan also contained what some call a poison pill option where pre-existing shareholders would be given additional stock to dilute an acquiring party's influence on the company.

"Despite of non-approval [sic] of Renewal of Takeover Defense at the 35th Ordinary General Meeting of Shareholders, Capcom will continue to focus on further preserving and enhancing corporate value and common interests of its shareholders," the company said. "If there is any large-scale purchaser of Capcom stock, we will react to make necessary measures within the admissible limits of applicable laws and regulations. In addition, we will react to take steps to ensure disclosure of the position of the board of directors and other information and that there is sufficient time for shareholders to examine the proposed large-scale purchase and reach a decision."

It sounds like shareholders want to keep all of their options on the table in the event that Capcom is the object of some other company's affections…

Source: GII

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