Document-13 Oct-14 Oct Longest day in Japan
2004.12.05 0:48

Healthy functioning of modern capitalism- 13 Oct. Daiei( biggest retailer in Japan ) didn't ask i.r.c.j( industrial revitalisation corporation in Japan-public organisation) for financial support. It's a right decision, sober, natural consequences from the market principle. I wonder how many people are suffered from false belief that public institution help improve one private company's balance sheet. I believe it's absolutely unreasonable thing for private company to seek for financial support from the public institution like ircj. Private company can do much more than public institution can do when it comes to management. Healthy decision. Applause.
What is corporate governance?- 13 Oct. Some people tend to use this term from the people inside the company who actually manage. I believe this term originally means from the shareholders' point of view. Some people might think that there are many ways of using the technical term like this as many countries use according as they usee in those countries. I agree. There are American standards. There are European standards. But I DO NOT agree that there are any Japanease standards. The standards in this country has been fluctuating, undecided and volatile. And then why people have to justify they have their own rules and standards and managements. Follow USA first perfectly. Only after that we will have a new standard eligible to take hold of as many cases as we can encounter.
Major M&A - 13 Oct. In many cases US suppases. Walmart already bought Seiyu supermarket company( Japan's middle sized retailer). Colony Capital bought a Fukuoka Dome and Sea Hawk Hotel, and Walmart shows strong interest of buying Daiei supermarket corporation and will aquire the one soon I believe. And what's happened next? Suppose Colony Capital were the investment company of Walmart, Walmart is a parent company of Colony Capital, both Seiyu and Daiei would be going to be the umbrella companies of Walmart. I believe merger of two strong baseball teams Seibu Lions & Daiei Hawks are under progress calmly but steadly.
Foundation of nationwide crime investigation body.- 13 Oct . I am in favour of privatisation of Japan postal services. I believe we have to found a nationwide crime investigation body paralell to FBI in the USA. Privatised company can do what post office does. Crime investigation cannot be done in a private company. Sooner the better. Let's think of it.
Abrupt change of Daiei- 13 Oct . I wonder what course Daiei is taking. Yesterday it said it didn't ask ircj's help, and today(just past 18pm) said yes we seek financial support from ircj. We need to keep watching what action is going to be taken by Daiei actually. I don't think its beneficial at all for Daiei to seek for help from ircj. What is he(Mr takaki) thinking about?
What's next?- 13 Oct . I can't soon believe that Daiei is going to use ircj for its help. Walmart is to start offering propose with more beneficial conditions. It's my understanding that Walmart is going to acquire Daiei sooner or later. I think we are supposed to think that this current movement( acceptance of help from ircj) is just a temporary setback and just a prelude to the further gigantic M&A by Walmart.
Vast scenario -14Oct. I think Walwart is going to buy Daiei eventually. But first, because they didn't want to accept notorious 'non performing loans', they planned to let them( ircj) all accept by Japan's 'temporary built' public institution- ircj. For ordinary Japanease, it's not a best consequence. But for Walmart it's a best result they could get.
Thus Japan's biggest retailer disappeared in one night.