Fate of Toshiba management is a cause of friction for bidders and banks - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Disagreement over whether to keep Toshiba Corp’s (6502.T) management following a potential buyout caused friction between two of its suitors and is now stoking concern among banks, sources said, further complicating an already uncertain process.

The logo of Toshiba Corp is displayed atop of the company's facility building in Kawasaki, Japan, June 24, 2022.The logo of Toshiba Corp is displayed atop of the company's facility building in Kawasaki, Japan, June 24, 2022.

But the two parted ways for the second round. Differences over JIP’s plan to retain Toshiba CEO Taro Shimada and his team were a source of friction between the two bidders, according to two sources familiar with the talks. The outcome of any deal could have far-reaching implications for Toshiba’s 116,000 employees and national security, given that the chips-to-nuclear conglomerate also makes defence equipment.

JIP, which previously bought out Olympus Corp’s camera business and Sony Group Corp’s laptop business, will continue to try to secure equity and financing commitments after the deadline, two of the sources said. State-backed JIC, which has been in talks with US private equity fund Bain Capital and north Asia fund MBK Partners to form a separate consortium, is also preparing to bid, but is unlikely to submit a binding proposal by Monday, two of the sources said.

 

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