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Business trends

Japan's takeover defenses rest on crumbling investor support

Proposals pass by narrow margins as shareholders question bosses' motives

Nagoya Castle: Investor support is dwindling for measures that wall off Japanese companies from takeover bids. (Photo by Takashi Uema)

TOKYO -- Investor support for safeguards against hostile takeovers is dwindling in Japan for companies that still employ such defenses, which critics say protect underperforming managers.

Just 55.2% of Sumitomo Realty & Development shareholders voted in favor of renewing the property group's defense measures at its annual general meeting on June 27, down from 66.3% in 2016, results published by the company on Wednesday show.

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