Home Business News Toshiba shares soared as the CEO was about to resign, bidding war...

Toshiba shares soared as the CEO was about to resign, bidding war expectations According to Reuters


© Reuters. FILE PHOTO: CEO of Toshiba Corp Nobuaki Kurumatani attends a press conference in Tokyo

By Makiko Yamazaki

TOKYO (Reuters) – Shares of Japan’s Toshiba Group (OTC 🙂 surged on Wednesday, rising higher on reports of more bidding plans for the group and expectations that chief executives likely to resign soon.

CEO Nobuaki Kurumatani is planning to step down amid controversy over a $ 20 billion acquisition price from his former agency, CVC Capital Partners, a source knowledgeable about his decision. Reuters on Tuesday.

Toshiba said its board will meet on Wednesday to discuss management issues but reports of Kurumatani’s resignation are not based on corporate announcements.

His departure could undermine CVC’s offer last week to make Toshiba private at a time rival suitors are reportedly weighing the bid.

The Financial Times reported that private giant KKR & Co (NYSE 🙂 is considering an acquisition proposal that would exceed CVC’s CVC level, ” the Financial Times reported, citing several people. has announced a summary of the plan.

Canada’s Brookfield Asset Management news agency is in the preliminary stages of seeking an offer, Bloomberg News reported, citing a person with knowledge of the matter as saying.

The representative of KKR Japan declined to comment. Brookfield did not immediately respond to a request for comment.

Sources familiar with the matter say taking over the CVC will protect Kurumatani and other regulators from pressure from operating shareholders. The activist shareholders have successfully prompted an investigation of whether management would pressure investors to support their decision.

Disclaimer sources were determined due to the susceptibility of the issue.

Shares of Toshiba have risen 8% to trade just under 5,000 yen / share that CVC Capital offers.

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