Hedge fund TOKYO (Reuters) -US Farallon Capital Management said on Friday that it has asked Toshiba Corp. to convene a surprise shareholders’ meeting over the company’s investment strategy, the second call for an EGM in a week by key executives. Toshiba investment.
Farallon, which owns more than 5% owned by Toshiba, will join senior shareholder Effissimo Capital Management, which has a 9.91% stake, in calling for an emergency meeting .
Farallon said Toshiba should seek shareholder approval for what it said was a change in investment strategies.
Toshiba’s recently announced plan to use about one trillion yen ($ 9.66 billion) for large unions and gains is in stark contrast to the strategy that “focused on controlled capital policy and focused growth through organic expansion and small-scale programmed M&A, ”the fund said in a statement.
He also noted Toshiba’s M&A reputation, saying the company has recorded about 1.8 trillion yen ($ 17.4 billion) in losses in the last 20 years as a result of “reckless growth investments.”
A Toshiba spokesman said the company is aware of what has been announced about the fund and will make a management filing once it officially receives the request.
Effissimo’s call for an EGM is about launching a team of legal experts to investigate the agency’s annual general meeting (AGM), at which they said the voting rights of several shareholders were compromised.
Reuters reported that a Japanese government adviser to the Harvard University endowment fund told that its vote at Toshiba ‘s AGM could be subject to a regulatory probe if it votes against the company’ s management.
($ 1 = 103.5200 yen)
Reciting with Makiko Yamazaki; Edited by William Mallard and Raju Gopalakrishnan