Toshiba Director Backs Plan That Could Lead To U.S. Buyout

A Toshiba Corp. independent director broke ranks with the company board's public stance on Thursday, saying he would back a resolution at next week's extraordinary shareholder meeting that could pave the way for a potential buyout deal, Makiko Yamazaki and Sakura Murakami reported for Reuters.

Photo Insert: Director Raymond Zage said in a statement he would vote for a resolution at the March 24 extraordinary meeting requesting that the company further investigate the possibility of a buyout.

The comments from American Raymond Zage, a former Goldman Sachs banker and hedge fund manager, mark the latest twist in a long-standing fight between the 146-year-old Japanese conglomerate and its large number of foreign shareholders.

Last week, US hedge fund Farallon Capital Management, where Zage was previously a managing director and remains an adviser, joined a chorus of investors who oppose the company's plan to break itself up by spinning off its devices business.

Zage said in a statement he would vote for a resolution at the March 24 extraordinary meeting requesting that the company further investigate the possibility of a buyout. Toshiba's board has said it opposes the resolution.

"It should not be difficult, nor time-consuming, to obtain preliminary bid indications and that some level of additional information could be provided to shareholders for the purposes of comparing a potential privatization with the potential value of the proposed spin-off plan," he said.

Toshiba CEO Satoshi Tsunakawa resigned this month, a sudden departure that came after sources said the break-up plans had also sparked division with the company in addition to fueling shareholder anger. Zage said he believed he was one of the top 100 shareholders in the company and owned more shares than the rest of the board and senior management combined.

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