Toshiba Corp. shares
fell sharply Monday morning following a report that a group led by Japan Industrial Partners Inc. may cut the valuation for a possible buyout proposal for the electronics and industrial company.
The shares were recently 6.3% lower at 4,452 yen after falling as much as 7.1% earlier.
Japanese business daily Nikkei reported Saturday that the Tokyo-based private-equity firm has apparently started considering lowering the total tender-offer value from the previous projection of up to about Y2.2 trillion ($16.09 billion) to below Y2 trillion. A valuation cut would be due to uncertainty over Toshiba’s earnings amid growing concerns about a global economic slowdown, Nikkei said.
A spokesman for Japan Industrial Partners declined to comment, as did a Toshiba spokeswoman.
Toshiba is planning to receive binding strategic proposals and to arrive at a decision as early as possible, Chairman of the Board Akihiro Watanabe and Jerry Black, chairman of the special committee that is reviewing bids, said in an open letter to its shareholders on Friday.
No assurance can be given regarding the consummation of an agreement with any of the potential partners, they said in the letter.