Story Categories: Finance, Japan, People, Tokyo Broadcasting Systems (TBS),

TOKYO -- The TBS network has received replies from Internet mall Rakuten to a second round of questions about its TBS stock buy plans and will now decide within 90 days whether to activate poison pill measures against Rakuten, which currently holds more than 19 percent of TBS stock, the network announced on Monday.

A third-party panel convened on April 27 to evaluate Rakuten's intentions toward TBS will invite Rakuten prexy Hiroshi Mikitani to a meeting, possibly as early as this week, to clarify Rakuten's answers to the TBS questionnaire.

TBS has indicated that, based on Mikitani's responses, it will decide within 90 days whether to implement anti-takeover measures to prevent Rakuten from gaining a 20 percent stake in TBS -- and a greater say-so in the network's corporate governance.

Although TBS has not released the details of Rakuten's replies, the network wants to know, first, how much stock Rakuten intends to buy, second, its relationship with the Murakami Fund, whose manager has been arrested for insider trading, third, its policy for corporate governance and, fourth, its response to allegations that the Rakuten Eagles team violated professional baseball by-laws.

TBS will hold its general shareholders meeting on June 28, at which time shareholders may be asked to side with TBS or Rakuten in a proxy fight.

At an April 19 press conference Mikitani has said he planned to boost Rakuten's TBS stake from its current 19.86 percent to above 20 percent so that Rakuten could include the broadcaster in its consolidated income statement as an equity-valued affiliate.

Rakuten has also asked TBS to make Mikitani and Muneaki Masuda, prexy of vid rental giant Culture Convenience Club, outside members of the TBS board.

On April 27 a third-party panel convened to evaluate the Rakuten stock buy plan..If the panel decides that Rakuten's bid to boost its stake in TBS to 20 percent and over is "abusive," it will give the network the greenlight to active poison pill measures. Since then, Rakuten has send two questionnaires to Rakuten asking its potential partner to clarify its intentions.

While the panel deliberates, Rakuten has promised to refrain from TBS stock purchases. If the panel rules against Rakuten, however, the company is likely to go to the courts, while continuing its attempts to lobby TBS shareholders for support.