Toshiba Corp. dropped on a report that the company’s preferred bidder may lower its valuation for the iconic Japanese conglomerate.
(Bloomberg) — Toshiba Corp. dropped on a report that the company’s preferred bidder may lower its valuation for the iconic Japanese conglomerate.
Shares fell as much as 7.1% in Tokyo after the Nikkei newspaper reported late Saturday that a group led by Japan Industrial Partners Inc. is weighing an offer of about 2 trillion yen ($14.7 billion), down from the 2.2 trillion yen JIP had expected in early November. The Nikkei didn’t say where it got the information.
Toshiba had a market value of $15.1 billion as of Friday’s close of stock trading.
A representative for Toshiba declined to comment on the stock’s decline and said the company is not in a position to confirm the veracity of Nikkei’s report. A spokesperson for JIP declined to comment.
Four major Japanese banks have agreed to provide a loan to the JIP-led consortium, Bloomberg News reported last week, removing a major obstacle to the deal’s progress. In an open letter to shareholders last week, Toshiba said the company is planning to receive binding proposals and would work to reach a conclusion to the process as soon as possible.
Bloomberg reported last month that the JIP consortium was considering a lower offer due to the company’s disappointing second-quarter earnings.
Toshiba has been exploring options for its future including going private. The process comes after years of scandals and clashes between management and shareholders at the Japanese company.
(Updates with JIP no comment in fourth paragraph)
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