Toshiba Split Proposal Dealt Blow as Proxy Firm Rejects Plan
Morning commuters near the Toshiba Corp. headquarters in Tokyo.
Photographer: Soichiro Koriyama/BloombergThis article is for subscribers only.
Toshiba Corp.’s proposal to split into two companies has been dealt a blow after a prominent shareholder advisory firm and largest stockholder came out against the plan.
Institutional Shareholder Services Inc. urged investors in the Japanese conglomerate to reject the proposal, it said in a report dated March 9. Activist investor Effissimo Capital Management Pte, which holds a roughly 10% stake in Toshiba, also spoke out against the plan on Thursday, saying that such a split would be irreversible and could be detrimental in the longer term.