This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Business News Labels & Publishers
Loeb’s proposal for Sony has opponents
By Chris Cooke | Published on Tuesday 28 May 2013
Proposals by US-based hedge fund man Daniel Loeb that Sony Corp should sell a slice of its entertainment business to help fund the restructuring of its struggling consumer electronics divisions have their opponents, insiders say, even though the top guard at the company is considering then.
As previously reported, Loeb’s Third Point fund has a 6.5% stake in Sony Corp, making it one of the firm’s biggest shareholders. He proposed a portion of the Sony music, movie and TV unit be sold to existing shareholders earlier this month, to free up monies to help rescue Sony Corp’s struggling electronics business. And while Sony bosses have previously denied past rumours that they were considering selling some or all of their entertainment assets, last week they admitted they are given Loeb’s plan some consideration.
That said, insiders say that some other significant Sony shareholders, especially those based in Japan, oppose Loeb’s proposal, saying that it is a move that would deliver only short term benefits, and may cause long term harm.
Sony management confirmed it was considering Loeb’s plans last week, ahead of an announcement that the company would also raise funds to help with recovery by issuing $1.5 billion in five year bonds to ordinary Japanese investors next month.
