Koito Case Essay

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Case Study – Koito Manufacturing Ltd. Readings: * Koito Manufacturing Ltd. * Note on Corporate Governance Systems I- Koito Manufacturing Ltd. Key word: Greenmail = It is the practise of purchasing enough shares in a firm to threaten a takeover (Buying the firm, getting in control of it), thereby (Ainsi) forcing the target firm to buy the shares back at a premium (a higher price because of the risk) in order to suspend the takeover. Therefore, greenmail is an antitakeover measure. Wikipedia http://en.wikipedia.org/wiki/Greenmail T Boone Pickens and the Goodyear Tire company greenmail (background?). Key Figure: T Boone Pickens has 26,7% of Koito’s shares, bought from a Japanese greenmailer. Became largest greenmailer. He wants to access the board and secret documents, but the board refuses it (despite of the Japanese law), because they suspect his secret motives. Keiretsu http://fr.wikipedia.org/wiki/Keiretsu Question: What are the consequences of these conglomerations of corporations ? Idea of cartels. T Boone Pickens constructed his argumentation on the fact that he wanted to access the board but he couldn’t not because of the fact that he is a former greenmailer but that the company is actually hiding lots of things that are consequences to the Keiretsu system. Different view of Keiretsu in the jap system: * for some it is from the jap culture * for others effective for LT and joint projects FYI 1 dollar = 100 Y Something to know: Koito had a very good growth, which was actually very high, and that lead the financial authorities to investigate on a possible fraud. For Koito, that was because of the greenmailer that sold the shares to Boones. The US vertical integration in this domain was replaced in Japan with the Keiretsu system. T Boones came and just attacked the Keiretsu system (which had lots of
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