Japan's state of economy is under stalemate at this moment. Though there are various risk factors including foreign exchange, crude oil prices, state of the economy of the U. S. and China would not deteriorate, it should start to improve later in 2005 even.
Mr. Horie, Livedoor President, needs to clearly explain the purpose of buying Nippon Broadcasting System shares. Meanwhile, there will be more and a variety cases of M&A attempts in Japan. Company management must be conscious of its share prices and transactions so that actions could be taken whenever necessary. Japanese companies should also consider using "poison pill" that many U. S. companies utilize in their defense against money-gamer buyouts.
Financial conglomerates and their effects must be carefully studied as possibilities. It must be remembered, however, that mergers would not lead towards improving international competitiveness. After all, everyday management efforts are most important.