Culture shock in Japan

Hostile takeovers are starting to take off in Japan. This is definitely a change from the calm corporate climate that prevailed there.

After 15 years of an economy that hasn't moved in any direction, companies and equity firms are looking to buy some assets cheaply.

Another sign came today when NEC announced plans to adopt a poison pill to prevent any such takeover. As I have said in the past, poison pills usually are sharedholder-unfriendly and as such don't deserve to be supported.

I have been buying small number of various Japanese ADRs over the last few months - most notably NEC (NIPNY) and Pioneer (PIO). Both are still attractive; they also pay a small dividend.