	economic spotlight japan buying overseas firms more u s and european firms will be falling prey to japanese corporations bulging with cash and eager to extend their reach further overseas according to merger and uisitions specialists polled by reuters already rich japanese companies have pounced on u s banks steel and other businesses in the latest attempt fujitsu ltd itsu t japan s biggest computer maker unsuccessfully bid for fairchild semiconductor corp a u s microchip maker which supplies components for supercomputers nomura securities co ltd nmsc t and daiwa securities co ltd dsec t japan s two largest brokerage firms are seeking a niche in the u s and european securities markets while the country s huge banks are looking for strongholds in overseas banking the takeover specialists said major trading houses which see their profits evaporating in the heat of increased competition in merchandise trade all have foreign businesses on their shopping lists among manufacturers car parts makers are under the most pressure to buy up overseas companies and follow the big auto makers they subcontract for as these move offshore the timing is favourable for japanese parties to buy up potential overseas businesses especially in the u s japan s largest market and where political risks are minimal a takeover specialist at one trading company said japanese companies have become among the world s richest after a series of boom export years and as the yen has climbed against the dollar by some pct in the past months but the yen s strength which has also raised the costs of japan s exports and allowed its asian neighbours to move into its traditional markets has frozen japanese corporate growth the specialists said looming trade friction is also threatening to erect more barriers against japanese exports japanese firms see overseas uisitions as a way to avoid the gloomy growth outlook and put their excess cash to work domestic interest rates now at record lows offer little investment opportunity japanese interest in uisitions has been continuous but the recent economic factors have become a driving force said a banking industry source so far though the japanese are being cautious while mergers and uisitions among u s firms number in the thousands japanese buyouts of overseas companies have totalled just a few dozen one merchant banker said another merchant banker said that a flurry of japanese uisition activity was originally expected five years from now but that time span appeared now to be too long japanese firms are becoming more aggressive now he said a turning point seemed to be dainippon ink and chemicals inc s diac t takeover bid for sun chemical corp of the u s last year which some analysts saw as somewhat hostile he added dainippon ink bought sun chemical s graphic arts group for mln dlrs late last year after an earlier unsolicited bid for the whole company sun chemical refused to sell its entire business after learning that dainippon planned to liquidate all but its graphic arts related businesses hostile takeovers are considered unethical and frowned upon by the japanese the trading company official says japanese people don t like fighting they prefer peaceful amicable deals but now after some experience overseas japanese companies are uainted with local practice he adds this is a healthy progression however the experts do not expect the japanese to run the board meetings of any giant u s or european concerns japanese companies are not fully confident in managing a large u s or european corporation one banker said they will expand their operations only gradually a typical way for japanese business a foreign merchant banker also noted there are not many mega deals left to do in the united states a lot of the big deals there have already been done but medium size and small concerns are potential targets of japanese companies the specialists said japanese will be aiming for new businesses in high technology areas japanese companies had used technology and quality to get where they are and are unlikely to deviate from that trend one takeover specialist said many are watching the results of the first uisitions if these succeed activity could build the specialists said but few such specialists are going to sit back and wait until the action begins already they said japanese trading houses long term credit and commercial banks brokerages and foreign merchant banks have set up research sections to act as go betweens in deals or find good buys for themselves reuter 
