Recently we reported on an American hedge fund billionaire, Daniel S. Loeb, who had presented Sony with his plans drawn up by his company, Third Point, to break off the entertainment and finance assets and sell them.
At the time Sony responded with a polite but firm statement saying the company would stay in one piece, “We look forward to continuing constructive dialogue with our shareholders as we pursue our strategy.”
Bloomberg is now reporting that the Sony board of directors is discussing Third Point’s proposal.
“The board will discuss this”
“It’s only a start,” said Chief Executive Officer Kazuo Hirai, “It’s important that the board will discuss this and come to a decision that represents Sony’s stance.”
Anaylysts have mixed feelings towards the proposed IPO, “Realistically, it’s not clear whether a spinoff will strengthen Sony,” said Mitsuo Shimizu, a Tokyo-based analyst.
“Sony will consider how to keep control of the company and may be forced to throw a bone to prevent a long, ugly fight,” commented another analyst. “They will try to give up as little as possible and are no doubt receiving advice on how to fight off the aggressor.”
However, since news of of the proposal was leaked, Sony’s shares have risen 22 percent, which may indicate that investors back the deal.