Toshiba shares slide as crisis deepens, fate of Westinghouse unclear
Published: 2017-03-15 11:50:24.0 BdST Updated: 2017-03-15 11:50:24.0 BdST
Shares in Toshiba Corp tumbled on Wednesday after it said it would consider a sale of Westinghouse but did not offer any clarity on whether it would proceed with a Chapter 11 filing for the US nuclear unit - a move that could stem losses.
Toshiba's failure to submit audited third-quarter earnings on Tuesday and its announcement of an expanded probe into Westinghouse also contributed to broad disappointment as did the Tokyo Stock Exchange's placing of the stock on its supervision list.
While the bourse's move was an automatic one that follows Toshiba's failure to clear up concerns about its internal controls a year and a half after a 2015 accounting scandal, it increases the risk of a delisting.
Market participants said the bourse's action meant that the shares were now "untouchable" for institutional investors who cannot invest due to compliance reasons.
Toshiba would be delisted if the bourse is not satisfied with a report on internal controls that Toshiba submitted on Wednesday. The report, required since the 2015 accounting scandal, must also address internal control lapses since then.
"Crucial details about Westinghouse won't be there. Toshiba is already in trouble for delaying the filing of its quarterly earnings twice, and without the complete report, the exchange is unlikely to find its report satisfactory," said Fumio Matsumoto, a senior fund manager at Dalton Capital Japan.
Chief Executive Satoshi Tsunakawa sidestepped questions about a potential Chapter 11 filing for Westinghouse on Tuesday, saying only there were various options. Sources have said bankruptcy lawyers have been hired as an exploratory step.
Shares in the TVs-to-construction conglomerate slid 7.5 percent in early trade. They have plunged by more than half since December, slashing the company's market value to $7.4 billion.
Masayuki Doshida, senior market analyst at Rakuten Securities, said too much uncertainty surrounded the firm.
"For how much can it sell the chip business? When will it release its earnings? Will it remain listed? And can it sell Westinghouse? We are just getting more questions," he said.
Toshiba will meet with creditor banks later on Wednesday to explain the situation, sources familiar with the matter said.
Any unauthorised use or reproduction of bdnews24.com content for commercial purposes is strictly prohibited and constitutes copyright infringement liable to legal action.
- Bangladesh seeks Canadian support in its journey towards a middle-income country
- Textile imports: New resolution pushing for EU rules to curb worker exploitation
- Mobile operators asked to publicly clarify internet data price in two days
- BIDA signs MoU for $2 billion Chinese investment in construction sector
- India-owned BHEL gets $1.5 billion order to build Rampal Power Plant
- China to invest $2 billion in Bangladesh construction materials sector
- IT firms call for higher limits on dollar purchases
- Four years into Rana Plaza tragedy, Netherlands finds Bangladesh RMG sector ‘safer’
- Chevron announces sale of Bangladesh operations
- Rangs chief Rouf, HRC Chairman Sayeed cleared of 1996 share fraud
- Pakistan journalist Hamid Mir 'will return' his father's 1971 award to Bangladesh
- 'Operation Eagle Hunt' on: Final appeal to militants to surrender
- Cameron ‘proud’ of Bangladesh, says ‘sorry’ for not visiting as prime minister
- Housewife bites off alleged rapist's tongue in Feni
- Bangladesh Islamist groups plan new alliances for next election
- Hillary Clinton’s aides threatened me with tax audit: Sajeeb Wazed Joy
- Five-year-old Sumaiya speaks about her 'abduction'
- Commerce Minister Tofail hints at 'conspiracy' behind Dollar gaining against Taka
- Bangladesh directors to boycott actor Shakib Khan
- United Airlines reaches settlement with passenger dragged from plane