Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>Early this morning, the Nikkei carried an article (<a href="https://asia.nikkei.com/Business/Business-Deals/Ex-Takeda-chairman-comes-out-against-Shire-purchase" target="_blank">English version</a>) saying that former <a href="https://www.smartkarma.com/entities/11747" target="_blank" data-smartkarma-citation="entities:11747:1">Takeda Pharmaceutical (4502 JP)</a> CEO and Chairman Kunio Takeda (joined Takeda right out of college in 1961, eventually president and CEO (from 1993 to 2009) and Chairman from 2003 to 2009) had put out through a spokesperson that he was against the deal. </p>
<p>This comes as "a surprise" because of the late date (proxies will generally be due in the next 2-3 days) but is not, strictly speaking, a surprise. Other media outlets like the FT had suggested a couple of weeks ago (and it was believed in some corners for months before) that Kunio Takeda privately opposed the deal and leaned towards the opinion that it was a "high risk deal", not necessarily taking the view of other family member Kazu Takeda (descendant of the family and Takeda voice in the TTBF) who had opposed the deal, partly on the grounds that Takeda <em>“will no longer be a Japanese company”</em> (also FT) if it closes the deal.</p>
<p>The statement by Kunio Takeda suggests less of a nationalistic bent (Kazu Takeda has seemed to lean on the nationalist tone, as has some of the Takeda family opposition to foreigners in past) and more of a thoughtful angle. But in his heyday, he was well-regarded for being aggressive, even in buying businesses overseas.</p>
<blockquote>
<p>A company with no sense of crisis and no appetite for reform will eventually lose the battle against time and disappear.  <strong>Takeda Kunio, Fortune Magazine, 2003</strong></p>
</blockquote>
<p>What does this mean for the shareholder vote on December 5th?</p>
<p>There are precedents to revisit. They are worth a look.</p>
<p>There are also considerations about how the shareholder register has changed (i.e. what you can see vs what you cannot see, and how people vote).</p>
<p></p>
<table class="table table-striped">
<tbody>
<tr>
<td colspan="2">
<h2>Previous Insights in This Series</h2>
</td>
</tr>
<tr>
<td>9-May</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-i-on-drug-deals-and-deckchairs" target="_blank" data-smartkarma-citation="insights:20087">Takeda/Shire I : On Drug Deals and Deckchairs</a></td>
</tr>
<tr>
<td>2-July</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-ii-drugs-divvies-and-agm-votes" target="_blank" data-smartkarma-citation="insights:21733">Takeda/Shire II:  Drugs, Divvies, and AGM Votes</a></td>
</tr>
<tr>
<td>1-Oct</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-iii-egm-announced-drug-deal-coming-together" target="_blank" data-smartkarma-citation="insights:24574">Takeda/Shire III : EGM Announced, Drug Deal Coming Together</a></td>
</tr>
<tr>
<td>19-Nov</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-iv-making-drug-deals" target="_blank" data-smartkarma-citation="insights:26018">Takeda/Shire IV:  Making Drug Deals</a></td>
</tr>
</tbody>
</table>

Early this morning, the Nikkei carried an article (English version) saying that former Takeda Pharmaceutical (4502 JP) CEO and Chairman Kunio Takeda (joined Takeda right out of college in 1961, eventually president and CEO (from 1993 to 2009) and Chairman from 2003 to 2009) had put out through a spokesperson that he was against the deal. 
This comes as "a surprise" because of the late date (proxies will generally be due in the next 2-3 days) but is not, strictly speaking, a surprise. Other media outlets like the FT had suggested a couple of weeks ago (and it was believed in some corners for months before) that Kunio Takeda privately opposed the deal and leaned towards the opinion that it was a "high risk deal", not necessarily taking the view of other family member Kazu Takeda (descendant of the family and Takeda voice in the TTBF) who had opposed the deal, partly on the grounds that Takeda “will no longer be a Japanese company” (also FT) if it closes the deal.
The statement by Kunio Takeda suggests less of a nationalistic bent (Kazu Takeda has seemed to lean on the nationalist tone, as has some of the Takeda family opposition to foreigners in past) and more of a thoughtful angle. But in his heyday, he was well-regarded for being aggressive, even in buying businesses overseas.

A company with no sense of crisis and no appetite for reform will eventually lose the battle against time and disappear.  Takeda Kunio, Fortune Magazine, 2003

What does this mean for the shareholder vote on December 5th?
There are precedents to revisit. They are worth a look.
There are also considerations about how the shareholder register has changed (i.e. what you can see vs what you cannot see, and how people vote).





Previous Insights in This Series



9-May
Takeda/Shire I : On Drug Deals and Deckchairs


2-July
Takeda/Shire II:  Drugs, Divvies, and AGM Votes


1-Oct
Takeda/Shire III : EGM Announced, Drug Deal Coming Together


19-Nov
Takeda/Shire IV:  Making Drug Deals




Takeda/Shire V: Tradition vs the Next Generation, Former Chairman Doesn't Support But...

Japan

Roland DG Corporation manufactures color printers and computer related products. The Company's product lines include color printers, vinyl cutters, 3D machines,  and software.  Roland DG has group companies in North and South America, Oceania, Europe.

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Roland DG Corp (6789 JP)

Takeda/Shire V: Tradition vs the Next Generation, Former Chairman Doesn't Support But...

Early this morning, the Nikkei carried an article (English version) saying that former Takeda Pharmaceutical (4502 JP) CEO and Chairman Kunio...

Travis Lundy

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