Japan Inc kicks back against shareholder activists

By Alison Tudor

TOKYO, March 29 (Reuters) - Japanese brewer Sapporo Holdings Ltd (2501.T: Quote, Profile, Research, Stock Buzz) and heater maker Noritz Corp. (5943.T: Quote, Profile, Research, Stock Buzz) both persuaded shareholders to reject proposals from shareholder activists on Thursday, sending their shares lower.

Unlike in the West, where shareholder revolts are common, Japan's corporate culture has traditionally been based on consensus among management, employees and customers, with shareholders having little say in shaping policy.

More than two-thirds of Sapporo's shareholders approved the company's defence measures against hostile buyouts, giving it a way to thwart U.S. hedge fund Steel Partners' takeover attempt.

Sapporo's shares dipped 0.4 percent to 828 yen. [ID:nT145742].

Elsewhere, Noritz's meeting voted to reject a proposal by another U.S. hedge fund Fursa Alternative Strategies LLC to raise its dividend 10-fold [ID:nT158856]. Noritz shares fell 2.6 percent to 2,275 yen.

TIDE CHANGING?

Hedge funds viewed Thursday's developments as a temporary setback.

"There is clearly a developing sense in Japan now that the needs of all stakeholders must be considered more carefully," said Andy Shpiz, a managing director of Fursa.