Informal Idemitsu, Showa Deal Rumored

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Nikkei Asian Review reported Wednesday that Idemitsu Kosan Co. and Showa Shell Sekiyu K.K. can and likely will begin to cooperate even if Idemitsus board continues to block an official merger. The Japanese newspaper said the two oil refiners began negotiating an informal tie-up, which would be tough for Idemitsus opposing shareholder(s) to block since Idemitsus planned purchase of Showa Shell shares would not give it enough voting rights to veto Showas dominion on such matters. The firms responded in a joint statement saying they have not made a formal decision on the integration nor unveiled that such a meeting took place.

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