Friday, April 27, 2007

Internal Struggle within Pentax Escalates

Here is the latest headline from the Japanese Daily Yomiuri Online, on the news of "Pentax set to pull backers of takeover bid from board":-

http://www.yomiuri.co.jp/dy/business/20070427TDY08006.htm
(News article is in English)

Now that the internal conflicts within Pentax, mainly between the (majority of) the current Pentax Management Board and the largest shareholder Sparx Group Co., have become scorching hot. Whilst the current Board opposes the merger (with Hoya), the investment company supports it. As a result, vigorous struggles and struggling between the two gangs will be totally unavoidable.

It is very likely that the current situation of the tangled warfare cannot come to a stop until 22nd of June, when a shareholder's meeting has been called and will be held, and the fate of Pentax will be determined by voting, and the new Board of Directors of the company will be elected.

No matter whether the case can be settled by June 22 or if the chaos can really come to an end (or just a temporary stop), the stability of the company is greatly affected as well as the investors will hesitate in investing in Pentax for the time being or even in the near future, undoubtedly, unless some days things can be cleared up and that Pentax can recover from the wound and looks worth for investment (again?).

Nonetheless, as Pentax's supporters, customers and users, what we do not want to see is that Pentax will not continue in the camera business (not even to mention about "commitment"), but it has the chance to happen if Hoya really takes over Pentax, as Hoya's stance had been stated clearly before, by their CEO previously, when the merger was first proposed and announced.

All in all, I am indeed upset to see things got worsen like that. I think Fumio Urano is the one who should bear most of the responsibility for all those undesirable happenings in this case, which are very sad afterall, frankly speaking.

Background Stories:-

Pentax's withdrawal from being merged by Hoya

Hoya Swallows Pentax

2 Comments:

Matthew Miller said...

Reuters has an article with more detail, including that Sparx holds a 23.98 percent stake in Pentax. I wonder what the other 76.02% are thinking.

RiceHigh said...

Here is another Reuters report with updated news, the battle will go uphill.

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