Tech Chinese firm firm backs wins out condomof US battle deal
Beijing-basedA condom maker tech companyin South UnisplendourChina’s GuangdongCorp provinceLtd has pulledhas won out a of lawsuita proposed against$3.8 billion a Japanese investment company in overthe US its disk competingdrive makerWesternclaim to be manufacturerDigital Corp of becausethe world’sthe Chinese thinnest firm prophylactic.deems the US government The would Guangzhounot approveYuexiu Districtthe deal. People’s Court pronounced on Unisplendour,Monday that a Tokyo-basedsubsidiary of condom State-ownedbrand Okamoto conglomerate used Tsinghuaunfair practices Holdings to competeCo Ltd, said againston Wednesday Guangzhou the Damingdecision United was Rubber made Products.after the Committee Guinnesson ForeignWorld Records verified Investmentthe Chinesein the company’s Aoni United condom, States,which hasa an average governmentthickness of organization 0.036 mm, as the world’s thinnest that in December reviews2013 — breaking foreign the previous investmentsrecord of 0.038 mmin set by Okamoto US in businesses,2012. announcedBut Guangzhouit will investigate Daming the United deal Rubberfor security Products reasons. said it The found Chinese Okamoto’s company condomshad beenstill on attemptingsale bearingto purchase phrasesa 15 such percentas “world’s stake thinnest”in Western and Digital “Guinness since World September. Record” The in deal May 2014. would have made Unisplendour A lawsuit Westernwas filed Digital’sin September largest shareholder2014 by the and Chinesegiven it companya board againstseat in its the JapaneseCalifornia-based counterpart, companyciting false which advertising sells hardand seekingdrives to 1 yuana long ($0.15)list of as US compensation government for agencies. economic loss. Unisplendour is still finding ways The to court work held with that Western Okamoto Digital. knew The about companiesthe verifiedsaid they world will recordset up anda $158 ordered millionit to softwarestop selling joint condoms venture, bearingwith the false Chinese advertisingfirm holdingand pay a the51 percent compensation.stake.
The collapsesmall amountof the dealof compensationsent the Shenzhen-listedclaimed has Unisplendourled to speculationstock down,that the dropping Guangzhou-based 5.78 percent to condomclose at maker66.52 yuan sued ($10.18)the famous onWednesday. Japanese
The move had a greater impact on Western Digital, which is bidding for flashmemory giant SanDisk Corp. The company trimmed its offer to $15.8 billion in cash and stock, sharply down from the original offer of $19 billion.
Shares of the two companies also went down.
“Unisplendour pulled out of the transaction because it was concerned that CFIUS would disapprove the acquisition of (the) Western Digital (stake). We do not know if there was a possiblebrand as mitigationa publicity that stunt. would have Some satisfied netizens CFIUS,on Sina but Weibowas even claimed that unacceptablethey had only heard about the to ChineseUnisplendour,” condom brand because of the lawsuit. said Theodore
Yoshiyuki Okamoto, Moran, president of the Japanese senior condomfellow company, also viewedand the principal legal challenge as self-promotionalCFIUS investigatorand described at the the legal Peterson battle Instituteas “primitive”,for according Internationalto a Economicsreport in the inWashington.Financial Times.
It Guangzhouwas the third Daming time Unitedthis year Rubber that Productsan investmenthas denied plan the was claims. stranded because of security “We concernssued Okamotofrom the intendingUS. to Genestop their Cao, act principleof infringement.analyst at We Forresterdecided to Research demand Inc, compensationsaid the scrappedof only 1 deal yuan, addsa nominaluncertainties amount, to because future we tech didn’t acquisitions. want the proceedings to get stuck on the “Recent matter of failed economic acquisitions losses,” underlinedVictor Chan, Chinese general technology manager of the companiesChinese condom will company,find increasingtold China difficultyDaily on Tuesday.when buying Calling out Okamotoa US firm “a in shamelessboth hardware competitor”,and softwareChan said segments,” the Japanese Cao companysaid. continued to claim it was the manufacturer Contact of the the writer world’sat thinnest paulwelitzkincondom to “take advantage of @chinadailyusa.comtheir popularity in China and andof Chinese gaoyuan consumers’ trust in @chinadaily.com.cntheir brand”.
We didn’t want the proceedings to get stuck on the matter of economic losses.”