The Elliott hedge fund takes a stake in Toshiba
NEW YORK / TOKYO, Sept. 30 (Reuters) – Hedge fund Elliott Management said it has taken a stake in struggling Japanese industrial conglomerate Toshiba Corp (6502.T), which is undertaking a strategic review under pressure from other shareholders.
Elliott, one of the world’s most powerful activist investors, who oversees some $ 48 billion in assets, said in a statement to Reuters that he is now a “significant” investor in Toshiba.
The announcement of the New York-based company comes just months after Effissimo Capital Management, Farallon Capital Management and other shareholders ousted the Toshiba chairman after the company colluded with the Japanese government to lobby on foreign investors.
“Our investment in Toshiba reflects our strong belief in the underlying value of the company,” said Elliott, who prefers to conduct his negotiations out of the spotlight, in the statement.
“We have been encouraged by the constructive nature of our engagement with the company over the past few months,” he said.
A spokesperson for Toshiba said the company is not disclosing any communication with its shareholders.
Toshiba is in talks with financial and strategic investors, including US private equity firm KKR & Co Inc (KKR.N), to seek their ideas for a new strategy. Read more
Japan has recently become a popular hunting ground for activist American investors, with Third Point targeting Sony Group (6758.T) and Olympus (7733.T) appointing three foreign directors after ValueAct took a stake in the company.
ValueAct has also invested in Nintendo (7974.T) and Seven & i Holdings (3382.T).
In the first half of 2021, 10 campaigns were launched with Japanese companies, according to data from investment bank Lazard.
Toshiba has launched a full review of its current assets after rejecting a $ 20 billion takeover bid from CVC Capital Partners in April. The results of the review will be presented when the company announces a new medium-term business plan in October. Read more
Reporting by Svea Herbst-Bayliss in New York, Makiko Yamazaki in Tokyo and Tiyashi Datta in Bengaluru; Editing by Shailesh Kuber, Kirsten Donovan and Jonathan Oatis
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