In the hope of carrying out an amicable merger, optical glass manufacturer Hoya Corp. has decided to continue negotiations with Pentax Corp. through the end of May 2007 rather than rush into a tender …
In the hope of carrying out an amicable merger, optical glass manufacturer Hoya Corp. has decided to continue negotiations with Pentax Corp. through the end of May 2007 rather than rush into a tender offer, said the Nikkei Report on 20 April 2007. At a board meeting scheduled for Monday 23 April 2007, Hoya had been set to decide whether it should begin a tender offer. But Hoya has put this plan on hold in order to give Pentax management time to reconsider its opposition to a merger. Hoya notified Pentax late on 19 April 2007 of its decision to continue with the talks. The two firms signed a basic agreement in December 2006 to integrate their operations. But Pentax“s board subsequently voted against a merger, prompting Hoya to change approach and consider a tender offer to acquire Pentax shares. In a top-level meeting on 18 April 2007, Pentax requested a 60-day period to assess Hoya“s tender offer proposal as well as permission to negotiate with other potential bidders. Hoya plans to continue the talks with Pentax until the end of May 2007, as agreed in December 2006, but is against Pentax holding talks with other firms. Hoya is apparently concerned that proceeding with its tender offer plan could draw opposition from Pentax officials, prompting them to invoke anti-takeover defenses.