Sony (SNE) Won't Consider Loeb's Entertainment Spinoff Proposal at AGM
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(Updated - June 19, 2013 10:09 AM EDT)
Sony (NYSE: SNE) will hold its annual shareholder meting on Thursday. According to Reuters, activist investor Dan Loeb won't be attending, which might be the best option for the hedge fund giant.
Sources said that Sony is not even considering Loeb's proposal to spin off all or part of its entertainment business.
On Tuesday, Loeb's Third Point boosted its stake in Sony to 70 million shares, or about 7 percent of total outstanding stock. The amount is up from a 64 million share position reported last month.
Loeb's proposal calls for Sony to spin as much as 20 percent of the entertainment division off to help offset weakness in its struggling hardware division.
Should no action be taken at Sony's annual meeting, Loeb would retain the right as a majority stockholder to call an extraordinary meeting.
Sony investors might be hoping for Loeb's suggestion to go through; the long, bitter proxy fight with Yahoo! (Nasdaq: YHOO) came to an end last year with a management shakeup. That stock is up 77 percent since then.
Today, Sony is down about 3 percent.
Sony (NYSE: SNE) will hold its annual shareholder meting on Thursday. According to Reuters, activist investor Dan Loeb won't be attending, which might be the best option for the hedge fund giant.
Sources said that Sony is not even considering Loeb's proposal to spin off all or part of its entertainment business.
On Tuesday, Loeb's Third Point boosted its stake in Sony to 70 million shares, or about 7 percent of total outstanding stock. The amount is up from a 64 million share position reported last month.
Loeb's proposal calls for Sony to spin as much as 20 percent of the entertainment division off to help offset weakness in its struggling hardware division.
Should no action be taken at Sony's annual meeting, Loeb would retain the right as a majority stockholder to call an extraordinary meeting.
Sony investors might be hoping for Loeb's suggestion to go through; the long, bitter proxy fight with Yahoo! (Nasdaq: YHOO) came to an end last year with a management shakeup. That stock is up 77 percent since then.
Today, Sony is down about 3 percent.
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