Softbank strengthens defenses against hostile takeover bid

Poland's leading computer systems integrator Softbank announced on Friday that its shareholders had agreed to change the rules for appointing its supervisory board, in an effort to strengthen its defenses against a possible hostile bid. "The move is aimed at securing the right of key shareholders to influence the firm's operations," Softbank chief executive Aleksander Lesz told Reuters. Softbank shares rose sharply last month on reports that its larger domestic rival, Prokom Software, might be preparing to launch a takeover bid in a move to consolidate Poland's fragmented computer-related services industry. In response, Lesz earlier this month took a first defensive step by raising his own stake in Softbank, by 5% to 33%, enough to secure control over decision making at the firm. Following Friday's changes, Lesz will select two out of the three supervisory board members. Last year Prokom bought 10% of Softbank, a leading provider of computer services to the financial sector, and the two firms said they would come up with a joint development strategy. But disagreements between the two chief executives derailed the plans. Analysts say the falling price of Softbank shares, weighed down by disappointing results and the bear market in technology stocks, could encourage a potential bidder. Softbank stock, which has fallen as much as 80% since October 2000, was down 4.7% to zl.20.3 on Friday. (Prawo i Gospodarka, p. 11; Reuters) T.J.