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Japan's top business lobby cancels private meeting with activist Fund Elliott

Keidanren has postponed a meeting with activist investor, Elliott Investment Management, scheduled for next month, a spokesman from the lobby group announced?on Tuesday. Last month, it was reported that the meeting planned for March 5 would be an opportunity to have an Elliott portfolio manager responsible for Japanese equity investments outline their investment strategy and how they engage with companies. This would then be followed by a "frank exchange" of views. Keidanren's official declined to elaborate on the reasons for postponing the meeting. Elliott didn't respond to our request for comment.

Elliott is a major player in Japan. It has stakes and pushes for change at a number of'major' companies. They are also opposed to Toyota Industries buying out the forklift manufacturer Toyota Industries.

The Toyota deal has been hailed as a case study in corporate governance, where the Japanese regulators encourage companies to reduce cross-shareholding arrangements and improve capital efficiency.

Elliott criticized the deal for being underpriced, and lacking in transparency.

Toyota, a member of the lobby group has extended its tender offer until March 2 due to a lack of shareholder support. Elliott has offered buy shares to investors who have agreed to accept the offer. If successful, this would translate to reduced support for the purchase.

The activist investor?has taken stakes?into other companies, such as?Tokyo Gas and Kansai Electrical Power, which are all members of the lobbying group.

(source: Reuters)