April 10, 2007 – Digital camera and medical equipment manufacturer Pentax Corp. called off a proposed share-swap merger with semiconductor parts manufacturer Hoya, according to a Reuters report today. The Hoya Pentax HD Corp. deal, which was set for October of this year, was canceled because of disagreements about the swap ratio.
Last week, Pentax shareholders opposed the proposed swap ratio and sought higher values for the deal. Six of eight Pentax board members also opposed the merger anticipating Hoya's governing control of the future joint company.
The opposition to Pentax president Fumio Urano's proposal resulted in his resignation, effective today. Urano will be replaced by Takashi Watanuki, a board member who vetoed the Pentax-Hoya deal.
The Pentax and Hoya merger, announced in December of last year, was worth an estimated $700 million USD (91 billion yen).
Hoya and Pentax board members will meet today for a potential renegotiation.
