Toshiba rises after top holder spurs Bain buyout speculation

[TOKYO] Toshiba climbed after the Japanese company's largest shareholder spurred speculation of a takeover bid by US private equity firm Bain Capital.

Shares rose as much as 6.3 per cent in Friday (Apr 1) trading in Tokyo after Effissimo Capital Management, which owns 9.9 per cent of Toshiba, said it had agreed to tender its entire stake if Bain decided to launch a tender offer for two-thirds or more of Toshiba.

In a statement Thursday, Bain said no decision had been made on a takeover bid. Toshiba said Friday that it isn't involved in any discussions between Bain and Effissimo.

Toshiba's future was thrown into limbo last week when shareholders voted down 2 proposals at an extraordinary general meeting. The first, put forward by management, sought to split the company in 2. The second, by the firm's second-largest investor, called for Toshiba to reconsider alternative options including a sale.

Japan's government will assess the situation after reports of a potential Bain takeover bid, trade minister Koichi Hagiuda said Friday. "Toshiba owns many technologies related to national security, like nuclear power and semiconductors, so we will keep close watch of the situation," he said. BLOOMBERG