Toshiba’s board is poised to rule out pursuing a deal to take the whole company private and is preparing to reveal an alternative plan to split the business in three that some investors say they may reject, according to people familiar with the matter.
A $20bn offer for the conglomerate by UK private equity group CVC in April boosted the share price and it has stayed high since then on hopes Toshiba would go ahead with what would be Japan’s biggest-ever buyout.
But after a rare and successful revolt by shareholders demanding either a buyout deal or a radical restructuring, Toshiba was forced to assemble a special committee to examine options for reducing the company’s hefty “conglomerate discount”.