Press Conference by the Minister for Financial Services

(Excerpt)

April 19 , 2005

Q.

Last evening, Livedoor Co., Ltd. and Fuji Television Network, Inc. announced their settlement regarding the takeover of Nippon Broadcasting System, Inc. Various problems have been pointed out in the corporate acquisition rules. How does the financial administration perceive the problems raised, and what is the significance of the draft revision of the Securities and Exchange Law to be deliberated today at the Diet in relation to this?

A.

As the question relates to an individual case, I would like to refrain from making comments on this matter. Generally speaking, in order for the capital market to grow, the top management of companies are urged to execute management in a manner that gives due consideration to the interests of stakeholders, including shareholders.

In regards to the revision of the Securities and Exchange Law, the takeover bid (TOB) regulations under the existing law do not apply to off-hours trading. Off-hours trading may take a similar form to trading conducted outside a stock exchange, depending on the way in which it is used. If this is left unaddressed, the TOB system might lose substance. We submitted the bill with the aim of revising the Securities and Exchange Law so that off-hours trading which take a similar form to trading conducted outside a stock exchange will be covered by TOB regulations. We hope the bill will be passed promptly, in order to ensure confidence in the securities market and create an attractive market for investors.