Toshiba Machine Co., which partly owns NuFlare, brushed off the hostile approach and went with the lower bid. ADOn Tuesday, a fund backed by activist investor Yoshiaki Murakami launched a tender offer for a 44% stake in Toshiba Machine, in an apparent effort to disrupt the consolidation. Toshiba Machine shares had surged as much as 19% Friday after the company said Murakami planned a bid. Yet shareholders at each of the companies — including the hedge funds that own Toshiba Corp. stock — seem to be the losers and no one is saying anything about it. ADFully owning all these subsidiaries will no doubt boost earnings for Toshiba Corp., but the parent isn’t in a financial position to plow cash into their businesses.

Source: Washington Post January 21, 2020 03:39 UTC