Makino Milling Machine (TYO:6135) said it received a court petition from Nidec Corp. (TYO:6594) seeking to block its planned allotment of share options without contribution, according to a Thursday filing on the Tokyo Stock Exchange.
Nidec, which holds 100 shares in Makino, filed the request for a provisional injunction with the Tokyo District Court on April 16.
It argues that the allotment violates Japan's Companies Act by breaching the principle of equal shareholder treatment and being an "extremely unfair method."
Makino said its board resolved to proceed with the allotment on April 10 under a takeover response plan meant to give time for third-party proposals amid Nidec's tender offer.
The company maintains the move was lawful and fair and called the petition groundless.
Price (JPY): $11320.00, Change: $+50, Percent Change: +0.44%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.