Major Japanese electric utility undertakes countermeasures against foreign investor's attempt to increase stake in company
Clients Major Japanese electric utility company
Jones Day advised a major Japanese electric utility company in connection with a proposal submitted by a London-based hedge fund to the Japanese government to double its stake in the company. In 2007, that fund had failed in its attempt to get our client to accept its proposals, including an increase in dividend, at the shareholders meeting. We provided legal strategic advice to the client and prepared a special report concerning regulatory issues in the electricity supply industry in other countries. In April 2008, the Japanese government rejected the hedge fund's request on national security grounds. The hedge fund's other proposals such as higher dividends were rejected at our client's shareholders meeting. The hedge fund sold its stake in the company in October 2008.