Japan's Fuji TV said yesterday it has secured a 36.47 percent stake in Nippon Broadcasting, enough for it to veto a high-profile bid by an Internet service provider to take over the radio broadcaster.
Fuji Television Network Inc, Japan's largest media company, said its tender offer bid, which closed on Monday, had been accepted, enabling it to obtain enough shares to bring its stake in Nippon Broadcasting System to more than one third.
"We were able to secure the more than one-third stake necessary for vetoing rights," said Fuji TV chairman Hisashi Hieda.
Fuji TV has been battling Internet services company Livedoor Co. Ltd for control of Nippon Broadcasting.
Fuji TV offered ¥5,950 yen (US$57) a share and will spend ¥47 billion (US$447,000) to buy 7.9 million shares, Fuji TV said in a statement.
The purchase boosts Fuji TV's stake to 11.96 million shares, or 36.47 percent of shares, from 4.07 million shares, or 12.39 percent. Not all shares of Nippon Broadcasting, however, have voting rights, and the transaction left Fuji TV with a 39.26 percent voting right stake.
That allows Fuji TV to veto mergers, executive appointments and other important matters at the broadcaster's shareholder meetings.
Livedoor now owns about 40 percent of the broadcaster and has been seeking to buy more shares. Nippon Broadcasting is the top shareholder in Fuji TV, and control of Nippon Broadcasting would give Livedoor managerial influence over Fuji TV.
Nippon Broadcasting has tried to block that, saying it will issue new stocks to raise Fuji TV's stake, while diluting Livedoor's.
Livedoor has requested an injunction in Tokyo District Court to block the warrant issue. Local media reports have said the court could reach a decision as early as this week.
Livedoor reiterated its pledge to keep buying shares in the open market until it owns at least half of the broadcaster.
"It was one outcome that we had assumed was possible," a Livedoor executive told Dow Jones Newswires. "There is no change in our stance. We aim for a majority stake."
In Japan, group companies hold each other's stakes in cross-shareholdings -- a setup that has been entrenched here for decades to prevent takeovers and maintain insular management.
Livedoor president Takafumi Horie's battle with Japan's powerful old-guard media has been closely watched here amid growing fears about young upstarts rocking the boat and foreign investors taking over Japanese companies.
The government's top spokesman, asked about the development yesterday, indicated that such threats should be expected by listed companies.
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