Sony Considering Loeb Approach

May 22 2013 | 12:38pm ET

Third Point's Dan Loeb may not get his way on breaking up Sony—but he'll get a hearing.

Sony CEO Kazuo Hirai, who is thought to oppose Loeb's plan to spin-off the company's entertainment division, said he and the board will consider the hedge fund manager's proposal, made last week after Third Point took a US$1.1 billion stake in Sony and met with management.

"The proposal from Third Point… is something that we should discuss thoroughly at a board meeting and then we'll decide Sony's stance," Hirai said today. "We are still at the starting stage."

It is unclear when that decision may come. Hirai refused to discuss his own position on the potential spin-off.

Activism like Loeb's has not been welcome in Japan, where Western investors are viewed with suspicion by corporate executives. But Loeb and others apparently believe that the economic policies backed by new prime minister Shinzo Abe could change Japan's corporate culture.

In addition, Loeb has taken pains to be conciliatory, meeting with Hirai and other Sony executives, as well as government officials, and hand-delivering the letter with his suggestions, which include a partial spin-off of the entertainment division and major cost cuts in Sony's electronics division. Loeb has also suggested he'd accept a seat on Sony's board of directors.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR