TOKYO Dec 15 Japanese oil refiners Idemitsu
Kosan and Showa Shell Sekiyu have effectively
given up on a stop-gap plan to form capital ties that was being
considered as a way to get around opposition from the Idemitsu
family to a full merger, the Mainichi newspaper reported.
Domestic media have previously reported that the two firms
were looking at taking stakes of around 20 percent in each other
after the Idemitsu's founding family threatened to block a
takeover of Showa Shell.
The Mainichi said the firms were set to abandon the plans
due to concerns within Idemitsu that they were not legally
feasible and also due to fear of antagonising the Idemitsu
founding family further.
Representatives for Idemitsu and Showa Shell declined to
comment on the Mainichi report but said there was no change in
plans for the companies to pursue a merger.
(Reporting by Osamu Tsukimori; Editing by Edwina Gibbs)