- Rival consortium led by Konica offered less than competitors
- Toshiba to hold board meeting Wednesday after receiving bids
Canon Inc. and Fujifilm Holdings Corp. are vying for control of Toshiba Corp.’s medical business, after another bidding group led by Konica Minolta Inc. offered less than was being sought, a person with knowledge of the matter said.
Suitors were told that they would need to offer more than 700 billion yen ($6.2 billion) to have a chance of winning, two people said, asking not to be identified as the information is private. Toshiba plans to pick a preferred bidder at a Wednesday board meeting and will then enter advanced negotiations, one of the people said.
Toshiba is selling assets to help pay for the fallout of the biggest accounting scandal in its 140-year history that prompted writedowns and executive departures. President Masashi Muromachi is divesting the medical unit, cutting jobs and considering a reorganization of its personal-computer and television operations as the company forecast a record loss for the fiscal year ending March 31.
Konica was bidding together with private-equity firm Permira Holdings Ltd., according to the people. The Nikkei newspaper reported earlier Wednesday that Canon is the frontrunner in the bidding after making the highest offer, without saying where it got the information.
Toshiba said in a statement it will hold a board meeting Wednesday to discuss its negotiation policy for the proposed sale of a stake in Toshiba Medical Systems Corp. Spokesmen for Canon, Konica and Fujifilm declined to comment.
Toshiba Medical Systems, Japan’s largest maker of health-care equipment, makes diagnostic imaging systems such as magnetic resonance imaging, X-ray and ultrasound equipment. The health-care division of Toshiba, which includes the medical-equipment arm as well as other businesses the company doesn’t plan to sell, had operating income of 23.9 billion yen in the 12 months ended March 2015, according to data compiled by Bloomberg.