まゆの部屋

Murakami aims to list Tigers shares
The Yomiuri Shimbun

After securing a de facto controlling stake in Hanshin Electric Railway Co., the Murakami Fund is moving in on the firm's prize asset, the Hanshin Tigers baseball team, sources said Wednesday.

The Murakami Fund's acquisition of 38.13 percent of Hanshin Electric Railway shares was received Monday, and the fund has asked the railway operator to list shares of the Tigers--its wholly owned professional baseball team and Central League pennant winners--in the next few years, the sources said.

It is most likely the company aims to boost its profit by selling Hanshin Tigers shares on the market.

The firm, however, said it would reject the plan, citing pro baseball accords that virtually prohibit teams from being listed on stock markets.

Some Hanshin group officials said the real intention of the investment fund led by Yoshiaki Murakami--a former International Trade and Industry Ministry bureaucrat--might be something other than the team's listing.

The sources also said the team's preparations for the Japan Series are being undermined by the boardroom maneuvers.

The Murakami Fund's desire to list the Nishinomiya, Hyogo Prefecture-based Tigers seems to be inspired by the listing of sports clubs in Europe and the United States. The fund reportedly believes the team's assets are not being properly exploited and aims to have the Tigers listed on the Hercules market, an Osaka Securities Exchange market for start-up companies, according to the sources.

The fund also reportedly argued that the railway company could make huge profits by selling listed shares, improving the group's corporate value.

Sources said the fund asked the railway company to introduce preferential treatment for individual shareholders, such as invitations to celebration parties when the team wins the pennant, and stock options for players as a form of motivation.

But there are a number of hurdles to be cleared before Murakami gets his way.

Under an agreement reached by all clubs, Nippon Professional Baseball must be informed of changes to the names, addresses and holdings of all shareholders.

"Under the current system, it's almost impossible [for a baseball team to be listed]," a source said.

The accord also stipulates that new membership or changes to team ownership must be approved by at least two-thirds of the NPB executive committee and at least three-fourths of owners.

"I heard that [the investment fund] proposed listing the team," Tigers President Toshihiro Makita said Wednesday. "But I can't comment as this is a matter for the railway company."

Later Wednesday, the railway company issued a statement, saying: "We are not considering listing the Tigers on the stock market. Even if we reconsider the proposal, it [the listing] is unlikely to take place."

Some railway company officials are concerned that if the baseball team is spun off from the company, the group's value will decline.

Such concerns arise because most Hanshin group businesses, including Hanshin Department Store, rely on the Tigers brand for marketing and brand awareness.

There are further concerns that Tigers fans could stop supporting the team if it becomes the target of merger and acquisition battles after being listed.

Some Hanshin group officials even speculated that the real intention of the investment fund was to get the railway company to buy back shares from the fund at higher prices.

===

Hanshin stock price fluctuates


The news resulted in fluctuations in Hanshin Electric Railway's share price on the Tokyo Stock Exchange, with the price at one point going up 133 yen to 1,200 yen from Tuesday's close of 1,067 yen. However, it closed down 28 yen at 1,039 yen.

Though the company's share price shot up when the market learned the fund had suggested the railway company list Tigers shares, it dropped sharply to 1,020 yen, 47 yen lower than the previous day's closing price, when a rumor spread that the railway company denied the possibility of doing so.

It was the first drop in the company's share price in three days.

===

Daiwa Securities' help sought


Hanshin Electric Railway Co. has approached Daiwa Securities SMBC Co. for help to take measures against a possible confrontation with the Murakami Fund.

The railway company reportedly started talks with the major securities company on Wednesday for an advisory contract.

The railway is expected to prepare with Daiwa's help for an expected meeting between the presidents of the fund and the railway company that may be held next week, and to seek advice from Daiwa on possible takeover bids by the fund if the confrontation deepens further.

The firm's denial Wednesday that the company would list Tigers shares on the stock market as the fund had asked it to was the first time the railway company showed any apparent challenge to moves by the fund.

It also is possible that the fund may be more confrontational now that the railway company appears to be striking back.

(Oct. 6, 2005)