Depository receipts of Toshiba Corp. surged as much as 12% Tuesday after reports that KKR is planning to bid for the Japanese electronics giant and that the chairman will take over leadership. Private equity firm KKR plans to outbid CVC Capital Partners, the Financial Times reported.
Brookfield is also poised to make a proposal, the newspaper said. CVC had reportedly offered 5,000 yen ($45.79) per share, prompting an objection from a hedge fund that argued the price undervalued the company.
Toshiba CEO Nobuaki Kurumatani, under pressure from investors and losing confidence from his own employees, is expected to step down, Nikkei reported. Chairman Satoshi Tsunakawa will succeed him as CEO, the newspaper said. Support for Kurumatani from Toshiba executives and other employees fell sharply in a recent internal survey, Bloomberg reported this week.
Source: BNN Bloomberg
