Toshiba shares fall after report trust banks preparing to sue
Source: Reuters
Shares of Toshiba Corp tumbled as much as 5.8 percent in early trade on Monday after a newspaper report that some trust banks are preparing to sue the company for damages.
The Asahi Shimbun reported that several trust banks including Mitsubishi UFJ Trust and Banking Corp [MTFGTB.UL] are set to sue Toshiba after its share price tanked due to a massive accounting scandal that has upended the company.
On Friday, Toshiba said it would sell a minority stake in its memory chip business as it urgently seeks funds to offset an imminent multi-billion dollar writedown on its U.S. nuclear business. It said the overseas nuclear division was now under review.
The Nikkei business daily separately reported over the weekend that Chairman Shigenori Shiga was ready to step down to take responsibility.
Read more: http://www.reuters.com/article/us-toshiba-stocks-idUSKBN15E02P
One month ago:
Over 40% of Toshiba's stock market value wiped out in three days
Third day of declines hammer Japanese technology giant after revelations of possible US writedown.
Gaurav Sharma By Gaurav Sharma
December 29, 2016 12:06 GMT
The Japanese industrial and technology giant Toshiba has seen more than 40% of its stock market value wiped off since Monday (26 December), after the company warned that its US nuclear business may be worth less than previously thought.
Shares in Tokyo-listed company fell 12% on Tuesday, followed by declines of 20% on Wednesday and another 17% at the close of trading in Thursday (29 December).
Earlier in the week, Toshiba revealed that it is facing the prospect of a hefty one-off loss at its US nuclear industry subsidiary Westinghouse Electric, which it bought in 2006.
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Two days ago:
Toshiba to withdraw from nuclear plant construction, chairman to quit
KYODO
JAN 28, 2017
Toshiba Corp. will cease taking orders related to the building of nuclear power stations, sources said Saturday, in a move that would effectively mark its withdrawal from the nuclear plant construction business.
The news comes amid reports Toshiba’s chairman may resign over the massive write-down that has doomed the company’s U.S. nuclear business.
The multinational conglomerate said Friday it will review its nuclear operations and spin off its chip business to raise funds in a bid to cover an expected asset impairment loss of up to ¥700 billion ($6.08 billion).
After Toshiba ceases taking new orders, it will focus on maintenance and decommissioning operations, according to the sources.
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A year and a half ago:
Toshiba inflated profits by $1.2 billion with top execs' knowledge: investigation
Mon Jul 20, 2015 | 11:43am EDT
By Ritsuko Ando | TOKYO
Japan's Toshiba Corp overstated its operating profit by 151.8 billion yen ($1.22 billion) over several years in accounting irregularities involving top management, an independent investigation said in a report on Monday.
In the country's biggest corporate scandal in years, the findings could lead to the restatement of earnings, a board overhaul and potentially hefty fines at the computers-to-nuclear conglomerate.
Toshiba President and Chief Executive Hisao Tanaka and his predecessor, Vice Chairman Norio Sasaki, were aware of the overstatement of profits and delay in reporting losses in a corporate culture that "avoided going against superiors' wishes," the investigating committee said in a report filed by Toshiba to the Tokyo Stock Exchange.
The overstatement was roughly triple Toshiba's initial estimate. Sources have said Tanaka and Sasaki would resign in the coming months and most of the board would be replaced to take responsibility for the shortcomings.
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