Chairman Okuda's Press Conference

February 21, 2005

Following is the gist of remarks made by Mr. Hiroshi Okuda, Chairman, Nippon Keidanren, at a press conference on February 21, 2005. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

(On the state of Japan's economy)

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.

(On Livedoor's attempt at buying Nippon Broadcasting System, Inc.)

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.

(On birth of financial conglomerates in Japan)

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.


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