Nippon Steel, Sumitomo Metals, Kobe Steel to Fight Potential Takeover

Nippon Steel, Sumitomo Metal Industries and Kobe Steel announced on Wednesday they signed memorandum of agreement to study impacts of third party’s takeover of one of the 3 firms on the partnership and counter actions against the takeover offer if one of the 3 firms receives such offer and the acquisition target asks the partners for support. They prepare for potential takeover to defend themselves in order to progress the partnership and to improve their value when the largest steel maker, Mittal Steel tries to acquire the second largest maker, Arcelor without agreement and merger and acquisition increases in world steel industry. The Japanese 3 makers continue to study counter measures against potential takeover. The 3 firms announced in March 2005 they would enter into further actions for the partnership and purchase additional shares each other to enforce the partnership. They completed the cross share purchases by December 2005. Nippon Steel increased the share in Sumitomo Metals to 5.01% and the share in Kobe Steel to 2.05% while Sumitomo Metals increased the holding in Nippon Steel to 1.81% and the share in Kobe Steel to 2.05% and Kobe Steel increased the share in Nippon Steel to 0.41% and the share in Sumitomo Metals to 1.71%.