制卧价贸易+学 金融英语阅读 Supplementary Reading Ito-Yokado dumps stock at discount Desmond Hutton 2005-04-2206:46(China Daily04/22/2005page12) Shares of Ito-Yokado Co,Japan's second-largest retailer,headed for the biggest drop in 25 years after the company agreed to sell stock at a discount to subsidiary Seven-Eleven Japan Co,partly to discourage hostile takeover bids. Ito-Yokado fell by as much as 13 per cent to 3,430 yen (US$32.06)on the Tokyo Stock Exchange.Seven-Eleven Japan said on Wednesday it will combine with Ito-Yokado under a holding company in a transaction valued at 1.46 trillion yen (US$13.6 billion). Ito-Yokado's 51 per cent stake in Seven-Eleven Japan was worth US$11.3 billion, or three-quarters of its market value,before the announcement,meaning a takeover of Ito-Yokado would bring control of bigger Seven-Eleven Japan.A similar anomaly in stock values prompted Livedoor Co's Takafumi Horie to make a hostile bid two months ago for the radio unit of Japan's biggest media group. "It is a glorified poison pill in my view and unfair to Ito-Yokado shareholders, foreign or domestic,"said John Vail,chief Japan equity strategist at JPMorgan Securities Asia Ltd in Tokyo."The effect on overall market sentiment is negative." The purchase price values Ito-Yokado's shares at a 10.8 per cent discount from Wednesday's closing price.Ito-Yokado's shares fell by 12 per cent,or 480 yen,to 3,430 yen at 1:11 pm yesterday,making the company the biggest decliner on the MCSI World Index.Its previous biggest one-day drop was on February 25,1975 Stock in Seven-Eleven Japan,the world's biggest convenience store chain,fell by 1.4 per cent to 2,865 yen. Denny's The holding company will also include Ito-Yokado's smaller restaurant subsidiary Denny's Japan Co. Shareholders of Denny's,which is valued at 64.2 billion yen,will receive 0.65 of a share in the merged company for each share they own,the companies said.That is about a 4.8 per cent discount to its 1,984 yen closing price on Wednesday. After the September 1 merger,Seven-Eleven Japan shareholders will own about 61 per cent of the enlarged company,Ito-Yokado investors about 37 per cent and Denny's stockholders the rest.This measurement does not threaten the 50.6 per cent 第1页共2页金融英语阅读 Supplementary Reading Ito-Yokado dumps stock at discount Desmond Hutton 2005-04-22 06:46 (China Daily 04/22/2005 page12) Shares of Ito-Yokado Co, Japan's second-largest retailer, headed for the biggest drop in 25 years after the company agreed to sell stock at a discount to subsidiary Seven-Eleven Japan Co, partly to discourage hostile takeover bids. Ito-Yokado fell by as much as 13 per cent to 3,430 yen (US$32.06) on the Tokyo Stock Exchange. Seven-Eleven Japan said on Wednesday it will combine with Ito-Yokado under a holding company in a transaction valued at 1.46 trillion yen (US$13.6 billion). Ito-Yokado's 51 per cent stake in Seven-Eleven Japan was worth US$11.3 billion, or three-quarters of its market value, before the announcement, meaning a takeover of Ito-Yokado would bring control of bigger Seven-Eleven Japan. A similar anomaly in stock values prompted Livedoor Co's Takafumi Horie to make a hostile bid two months ago for the radio unit of Japan's biggest media group. "It is a glorified poison pill in my view and unfair to Ito-Yokado shareholders, foreign or domestic," said John Vail, chief Japan equity strategist at JPMorgan Securities Asia Ltd in Tokyo. "The effect on overall market sentiment is negative." The purchase price values Ito-Yokado's shares at a 10.8 per cent discount from Wednesday's closing price. Ito-Yokado's shares fell by 12 per cent, or 480 yen, to 3,430 yen at 1:11 pm yesterday, making the company the biggest decliner on the MCSI World Index. Its previous biggest one-day drop was on February 25, 1975. Stock in Seven-Eleven Japan, the world's biggest convenience store chain, fell by 1.4 per cent to 2,865 yen. Denny's The holding company will also include Ito-Yokado's smaller restaurant subsidiary Denny's Japan Co. Shareholders of Denny's, which is valued at 64.2 billion yen, will receive 0.65 of a share in the merged company for each share they own, the companies said. That is about a 4.8 per cent discount to its 1,984 yen closing price on Wednesday. After the September 1 merger, Seven-Eleven Japan shareholders will own about 61 per cent of the enlarged company, Ito-Yokado investors about 37 per cent and Denny's stockholders the rest. This measurement does not threaten the 50.6 per cent 第 1 页 共 2 页