The Market Compass report examines the current state of acquisition practice for Japanese stocks from the perspective that more tender offers (TOBs) are failing to conclude in a single round. It addresses issues concerning the requirements for completing transactions and how acquisition prices are determined.
One recent trend surrounding TOBs is the growing number of cases in which corporate acquisition procedures do not conclude with a single successful tender offer. This suggests that there are situations in which it is becoming more difficult to agree on acquisition prices and other terms.
The article discusses practical issues concerning tender offers for Japanese stocks, as well as acquisition scenarios in which Japanese stocks may not be acquired cheaply. Investors are said to need to closely monitor the process by which TOBs are completed and developments in publicly disclosed information.