Reuters reports that The Tokyo Stock Exchange has made a surprising ruling, deciding not to strip Nikko Cordial of its share listing.
The decision may weaken Citigroup’s $10.8 billion takeover bid for the brokerage. Citigroup has nonetheless said it will not change its offer of 1,350 yen a share.
But the exchange’s decision could encourage investors who feel the offer is too low to wait for a better deal.
“If Citigroup really desperately wants Nikko, it may have to offer more of a premium now that the stock will still have liquidity,” says Masaki Iso, chief equity officer at Yasuda Asset Management.