Hope Pentax can hold off opening third party talks. There is the $25,000,000 breach of agreement fine if they stray early and waiting would, however marginally, strengthen their negotiating position.
Jack --- Tom C <[EMAIL PROTECTED]> wrote: > Excerpts from various reports... > > Pentax Corp and Hoya Corp continue to face difficulties in reaching > agreement on proposed plans for a business integration, the Nikkei > reported, > without citing sources. > > ... > > Under the current terms, if Pentax withdraws from the business > integration > plans or begins tie-up talks with a third party, Hoya can demand > payment of > around 3 bln yen for breach of contract, according to Nikkei. > > 25 million USD > > ... > > April 19 (Bloomberg) -- Hoya Corp. will reject Pentax Corp.'s request > to end > exclusive talks on their planned merger, Kyodo News reported, without > saying > who provided the information. > > Pentax is losing market share in the camera business because of price > > declines and competition from Canon Inc. and Sony Corp. The company > is > counting on medical equipment including endoscopes, > a business it entered in 1977, to spur growth. > > Hoya is seeking to expand sales of medical equipment such > asendoscopes to > help trim a reliance on glass substrates used in semiconductor > manufacturing. Its market value of 1.74 trillion yen ($15 billion) is > 18 > times larger than Pentax's. > > ... > > Hoya Corp. will not agree to Pentax Corp. entering tie-up talks with > other > companies, despite a stalemate in the two companies' business > integration > talks, sources familiar with the matter said > Thursday. > > At a top-level meeting Wednesday, Pentax, a pioneer of single-lens > reflex > cameras, asked Hoya to allow it to seek talks with third parties, > although a > merger accord struck between the two > companies in December stipulates that the camera maker cannot have > such > talks until the end of May, the sources said. > > Hoya believes its plan of allying with Pentax may become hopeless if > it > accepts such a request, the sources said. > > Hoya is expected to consider at a board meeting on Monday whether to > launch > a tender offer. > > ... > > The two Tokyo-based companies in December agreed to hold exclusive > talks on > a merger until the end of May. After Pentax scrapped the plan, the > companies > agreed to continue talks, and Hoya said it will consider a takeover > bid. > > > > -- > PDML Pentax-Discuss Mail List > [email protected] > http://pdml.net/mailman/listinfo/pdml_pdml.net > __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! Mail has the best spam protection around http://mail.yahoo.com -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net
