Yet amid the obvious unwinding of these
cross-holding relationships, management of poorly managed companies continue to wonder why the company's stock prices are so depressed, why analysts never come to visit them anymore, or why both domestic and foreign individual investors have dropped their stock from their portfolios.
He said: ``The inflated levels of gearing and
cross-holding in the sector of the market created a dangerous cocktail which the falling market exposed.
Two Caribbean newspapers have agreed to increase their
cross-holding of shares in each other.
When asked to comment by African Business on the state of play in the
cross-holding between the two companies, Tracey Peterson, De Beers spokesperson, reiterated that De Beers' equity in Anglo American plc is a core holding for the diamond miner.
As Nissan has strong
cross-holding ties with banks including the Industrial Bank of Japan and Fuji Bank, some 60 billion yen of the portfolio appraisal loss has stemmed from price falls in bank stocks.
The current Cable TV Rules and Uplinking/ Downlinking Guidelines for Broadcasters do not allow for any constraints on
cross-holding.
Elsewhere, Yosano endorsed a plan to use money from corporate pension funds to buy shares that firms would unload on the market as an increasing number of companies dissolve their
cross-holding of equities, a practice common in Japan to consolidate business ties.
The Government of India on Thursday has offered its approval to the maiden
cross-holding transaction involving state-owned companies after a long gap which will facilitate the PSU entities - Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) - to acquire a 10% interest in Indian Oil Corporation (IOC).
Sompo Japan's exposure to domestic equities is exacerbated by its
cross-holding with the Mizuho Financial Group.
Detailed registration procedure, eligibility norms, terms and conditions,
cross-holding norms, period of registration, security conditions and other obligations have been delineated.
Despite the equity
cross-holding, Fuji Fire president Yasuo Oda said the company is not "considering at this moment" merging with AIG or becoming a member of the AIG group.
Shares owned by banks and other financial institutions in Japan on a
cross-holding basis accounted for 36.
