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  "documentTitle": "N/A (Japanese M&A regulatory guidelines; Alps Alpine cited as precedent)",
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  "authorName": "Norie Hata",
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      "text": "Under the new M&A guidelines, the special committee could choose its own separate independent financial advisor to come up with unbiased valuation opinions if the committee is concerned about the independence of the target company's financial advisor, according to Shinpei Ochi, deputy director of Meti's corporate system division.",
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      "text": "The draft guidelines say the current Tokyo Stock Exchange's definition of independence in relation to independent directors should be extended, such that all independent directors are genuinely independent with no connection to any related company for more than 10 years.",
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      "text": "As for the majority of the minority conditions, the guidelines said the establishment of the majority of the minority conditions would strengthen the target company's ability to negotiate terms and achieve an M&A transaction price favorable to minority shareholders.",
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      "text": "Furthermore, independent directors of the target company are urged to be involved practically in the process of establishing a special committee as well as in the process of negotiating M&A conditions and terms.",
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      "text": "In last year's public campaign against Alps Electric's [TYO: 6770] proposed purchase of affiliated company Alpine Electronics, Hong Kong-based activist Oasis Management criticized valuation opinions of Alpine's financial advisor SMBC Nikko for being biased in lowering guidance. Oasis said the valuer was a subsidiary of Alps' major lender and was therefore not independent.",
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      "text": "The reputation of these institutions will be the key, said the guidelines, because, unlike some other countries, Japan does not have adequate regulations governing these assessment institutions yet.",
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      "text": "The guidelines also say conducting a proactive market check, such as \"go shop\" or auctions, is necessary to ensure fair M&A transactions that would enhance corporate value and secure the fairness of the price of the transaction concerned.",
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