Oriental Land to buy back 5 mil. shares of stock - 5/18/05

Oriental Land Co., operator of Tokyo Disneyland and other leisure facilities, said Tuesday it would buy back up to 5 million shares, or 4.99 percent of its total shares, in a tender offer.

Keisei Electric Railway Co., Oriental Land's top shareholder with 22.88 percent, held a board meeting Tuesday and decided to accept the offer.

As the market value of Keisei is less than one-fourth of that of Oriental Land, a company that would acquire Keisei would be able to affect Oriental Land's decision-making process. The tender offer apparently aims to resolve the twisted capital relationship between the two companies and prevent a hostile takeover.