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00:00Is this a new dawn for Japan. I think it could well be. I think the whole run up that deal has been quite a drama to watch in the press or elsewhere. You don't have many of these these board room sort of long negotiations reported on here in Japan and we're seeing finally I think after not seeing happen any should have almost years of decades a diverse split it seems in some cases before going through a lot of deep analysis and consideration of what the future shock should be to come up with a decision as to who the best pirate which is a good thing for governance. It means we're rather an age or we seem to be entering an age where the expectations of shareholders and society in general on boards and the appearance of more independent outside directors on boards is making for the board has to be real more has to decide what is the better deal long term for the company. And also we're seeing or at least Nasdaq. Yeah. Culturally I mean it really has been though a government policy reflecting a cultural sensitivity to keep and protect national companies. Technology innovation that seems to have changed but politically on the surface of the average Japanese I mean this is very much still part of the fabric isn't it. It is part of the fabric in the bureaucracy . I would say certain parts of the back here that slower change than public opinion here but even watching social media and participating in here you saw a lot of people on both sides of the line. But anyway analyzing the situation as sharp as in objectively and hoping the board would whatever its decision it made make the right decision so that the vote was very much in . Most Japanese public. I think the majority would say they are sort of happy that the government up till which was in sort of more involved. I think behind the scenes several months ago at some point say about a month ago it sort of said it seems hands off and we'll leave it to the market and the board should make the best decision. Michael McKee were quite happy with that because it means that there's not a pressure on corporate management to feel they have to accept government policy from a certain bureaucratic agency which might result in the wasting of tax money. You know that you have to ask this question Why would you ever want a tax money could be. Which is really go to government sponsored funding is all about science yet to be spent on a transaction in these large amounts. When you have a private buyer who is willing to spend more money to save the company well look overseas buyers have wanted to buy Japanese companies before they've been thwarted by the Japanese Ministry of Economy Trade and Industry METI. Here are those days over I think they're heading for over. I think that's that's really what this deal may auger if it goes through VIX. Knock on wood here . You know we have these final disclosures which are unfortunate I think and show us that somebody something messed up somewhere on the sharp side in terms of earlier disclosure of stuff which should have been told to do Foxconn. But things happen in any deal. You can't sort of blame any. You don't know what having the background here. If the even if the deal doesn't go ahead though what this deal will stand for is that we seem to be entering an error an era an age where fair competition and a full analysis of all proposals on the table is going to be required of boards rather than management feeling that it won't be questioned by shareholders and the public if it simply goes along and slide along the raft with government policy guess what's expected by many many says it's going to be examining what going forward what happens and how Foxconn manages this company. But Amanda Lang seems to be maybe even a little bit . You might say mild sour grapes that be there. Their horse didn't win the race yet. Their work may still win the race . Their work has some good synergies behind and some good ideas and consolidating the industry here in Japan which don't make this easy comparison. And I think that that's really one point he has to make if the board was faced with a very difficult choice. Do you go with in groups increasing your negotiating leverage against Apple or do you go with a longer term Foxconn pipe. And I think what is good though is that the board opted for a strategic long term i.e. quasi was a permanent buyer instead of essentially private equity. So government you know government sponsored or not I A.J. is a private equity here . And what private equity does is they buy you in order to frankly flip you to somebody else or IPO you get an exit. Yeah. And in a certain number of years. So if you sell the folks that they can sell that's good but you might lose control of your future fate and your choice of your parent company long term .

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What Foxconn-Sharp Deal Delay Means for Corporate Japan

Nicholas Benes, The Board Director Training Institute of Japan's representative director, discusses Foxconn's decision to postpone signing a definitive agreement with Sharp. He speaks with Bloomberg's Angie Lau on "First Up." (Source: Bloomberg)

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