Itochu exec named Descente president in rare Japanese hostile takeover

Descente

25/03/2019 07:38

TOKYO, March 25 (Reuters) - Japanese sportswear company
Descente  8114.T  said it was replacing its president with an
executive from Itochu Corp  8001.T , capitulating to a rare
hostile takeover by the Japanese trading house.
    Descente said on Monday that Masatoshi Ishimoto, a member of
its founding family, will be replaced by Shuichi Koseki, a
senior Itochu textile executive. 
    The change is due to be approved by Descente shareholders at
an annual general meeting in June, it said, marking an end to a
months-long tussle over its management. 
    Itochu has said Descente needs better management and should
expand into markets such as China. The two companies have been
locked in a hostile takeover battle, unusual in Japan where
corporate boards are often controlled by company executives. 
    But a government push for better corporate governance has
forced companies to open up their boards to more independent
directors, with some abandoning takeover defences in the past
few years.
    Itochu said earlier this month that it had amassed a 40
percent stake in Descente, which has licensed brands such as Le
Coq Sportif, Munsingwear and Umbro.

 (Reporting by Ritsuko Ando; Editing by Himani Sarkar)
 ((Ritsuko.Ando@thomsonreuters.com;))