Daido Steel to Set Defense Measure against Buying-Off

Japanese major special steel maker, Daido Steel launched strengthening of relationship with major business partners for defense against buying-off. The firm strengthened mutual shareholding with Honda Motor which is big holder of Daido Steel’s shares, and announced to request adding to holding of Daido Steel’s shares for Suzuki Motor. Honda raised to 3% of Daido Steel’s shares from about 0.2%. Daido Steel plans more strengthening of relationship with major business partners when buying-off for Japanese enterprise by foreign enterprise is facilitated by removal of forward triangular merger. Moreover, Daido Steel announced on Tuesday the firm decided to introduce new defense measure of buying-off against large scale buying of share which one enterprise aims over 20% of shares with voting right. The firm sets rules which are prior presentation of large scale share buying inclination statement, duty of enough information supplements or setting of evaluation period by management board, and which establishes countermeasure in case of nonconformance for rules. The firm comes into effect after acceptance by annual meeting of shareholders in June.