Toshiba Corp. walked away from potential private equity buyout offers at a substantial premium, as well as advanced talks for a minority stake from Canada¡¯s Brookfield Asset Management, according to three people familiar with the matter.
Toshiba¡¯s decision to not pursue either course ¡ª some details of which have not been previously reported ¡ª and instead focus on a plan to split itself in three, has widened the gulf between the conglomerate and a number of its hedge fund investors, according to the people, all of whom declined to be identified because of the sensitivity of the issue.
Some investors take issue with Toshiba¡¯s argument that a three-way split would create greater value than a private equity deal, given the company never formally solicited buyout bids, the people said. As such, some investors question the transparency of Toshiba¡¯s ongoing strategic review.
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