© Reuters. FILE PHOTO: Toshiba logos are pictured at Toshiba Corp’s annual general meeting with its shareholders in Tokyo, Japan, June 25, 2021. REUTERS/Kim Kyung-Hoon/File Photo
By Makiko Yamazaki
TOKYO (Reuters) -Toshiba Corp shareholders voted in two board directors from activist hedge fund investors at its annual general meeting on Tuesday – an inclusion that is expected to add momentum to its exploration of potential buyout deals.
Nabeel Bhanji, a senior portfolio manager at Elliott Management, and Eijiro Imai, managing director at Farallon Capital Management were elected, as was Akihiro Watanabe, an executive from boutique U.S. investment bank Houlihan Lokey (NYSE:HLI), who becomes chairman of its board.
The appointment of Bhanji and Imai was not without controversy and right after the vote, external director Mariko Watahiki tendered her resignation, TV Tokyo reported. Toshiba (OTC:TOSYY) declined immediate comment.
Watahiki, a former high court judge, had argued their appointments could lead to the board becoming too skewed towards the input of activist investors.
To date only a few large Japanese companies have brought activist shareholders onto their boards. The inclusion by Toshiba is particularly significant given its history of accounting and governance crises since 2015 and tensions with its large activist investor base.
“One of the major issues that we’ve had as a company is a lack of trust between our large shareholders and management, and this was an attempt to address that,” Raymond Zage, who chairs the nomination committee, told the meeting before the vote.
Farallon and Elliott together hold about 10% of Toshiba and activist shareholders are estimated to own roughly a quarter of the company’s stock.
Tensions with activist investors were particularly fraught last year when a shareholder-commissioned investigation concluded the company had colluded with Japan’s trade ministry – which sees Toshiba’s nuclear and defence technology as a strategic asset – to block overseas investors from gaining influence at its 2020 shareholder meeting.
Earlier this year, shareholders rejected management-backed plans to split the company in half, prompting Toshiba to restart a strategic review.
All in all, seven new board directors were appointed and six including Watahiki were reappointed on Tuesday.
Toshiba said this month it had received eight initial buyout proposals to go private as well as two proposals for capital alliances that would see it remain listed.
It plans to shortlist bidders soon so that selected suitors can start due diligence from July.
Jerry Black, who chairs the board’s committee in charge of the strategic review, told the AGM that going private “could possibly help” with a radical and speedy transformation of Toshiba, while stressing that the committee has no predetermined points of view.
Sources have told Reuters that at least one bidder is considering offering up to 7,000 yen per share to take the company private, valuing a potential deal at up to $22 billion.
KKR & Co (NYSE:KKR) Inc, Baring Private Equity Asia, Blackstone (NYSE:BX) Inc, Bain Capital, Brookfield Asset Management, MBK Partners, Apollo Global Management (NYSE:APO) and CVC Capital Partners have submitted initial bids, according to sources with knowledge of the matter.
Some of them may form consortia for a bid, they added.
Shares in Toshiba turned positive on the news, finishing 0.7% higher at 5,745 yen. That’s up 21% since the end of the year, giving it a market value of $18 billion.
Morgan Stanley: bear market rally to continue
One of Wall Street’s best-known bears, Michael Wilson, thinks the S&P 500 will rise another 7% before turning down, so the bear market rally will continue for now, writes Market Watch.
After the Dow Jones, S&P 500 and Nasdaq Composite joined their strongest weekly gains since at least May last Friday, Wilson, who is chief strategist and head of U.S. equity markets at Morgan Stanley (NYSE:MS), told clients that there could be another 5% to 7% before the downward trajectory of U.S. stocks resumes during the latest bear market recovery.
Wilson has held a bearish view of the stock market for about 2 years and correctly predicted a sell-off this year.
Wilson explained in a research note sent out to clients on Monday that a pullback in the 38-50% drop in the stock market this year “would not seem like something unnatural, not consistent with the previous bear market rally.”
While growth concerns have triggered a sell-off in commodities and lowered inflation expectations, the fact that the U.S. economy is already slowing and heading toward recession means that any market rally is likely to be short-lived, and U.S. stocks are likely to eventually fall.
Wilson mentioned in the note that the bear market is not over yet, although it may appear otherwise in the next few weeks as the market takes the rate cut as a sign that the Fed can still manage a “soft landing” and prevent a meaningful revision to earnings forecasts.
U.S. stocks rose last week as investors now hope the slowing economy and falling commodity prices may inspire the Fed to raise interest rates less sharply. Federal funds futures, a derivative used by investors to bet on the pace of the Fed’s monetary policy changes, estimate with a high probability that the Fed will be forced to start cutting interest rates again as soon as next summer.
They also consider the lower peak in the federal funds rate: it will peak around 3.5% at the end of 2022 instead of 3.75% just a couple of weeks ago. Wilson also pointed out the drop in Treasury yields: the 10-year Treasury bond yield went from 3.230% to a low of 3.07% on Friday before rebonding again on Monday.
Wilson expects the S&P 500 index to fall to around 3,400 points if the U.S. Federal Reserve manages to get a “soft landing” for the economy — which Fed Chairman Jerome Powell said last week would be “a very difficult thing to do.”
Wilson expects that if the U.S. economy plunges into recession, the S&P 500 index will fall to around 3,000 points. In any case, Wilson believes that U.S. stocks are still highly valued because the risk premium — that is, the measure of compensation that investors receive for the extra risk of owning stocks instead of bonds — remains about 300 basis points higher than the 10-year Treasury bond yield, which is considered a “risk-free rate.”
Easing chip shortages to help Volkswagen in H2 – CEO
© Reuters. FILE PHOTO: Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Brendan McDermid/File Photo
BERLIN (Reuters) – Volkswagen (ETR:VOWG_p) sees a strong second half of 2022 and expects progress in catching up with rival Tesla (NASDAQ:TSLA) as easing chip shortages start to offset supply chain bottlenecks and rising costs, the carmaker’s CEO said on Tuesday.
“We are earning more than ever,” Chief Executive Herbert Diess said at a works meeting, adding Volkswagen is ramping up electric vehicle volumes in its biggest markets in Germany and China thanks to easing semiconductor shortages.
This should allow the carmaker to narrow the Volkswagen-Tesla gap this year and meet its goal of becoming market leader by 2025 if it seizes the moment while the U.S. electric car maker burns cash on large investments, the CEO said.
“Elon (Musk) has to ramp up two highly complex factories in Austin and Gruenheide at the same time – as well as expand production in Shanghai. That’s going to take strength out of him,” Diess said.
Reliance Chairman Mukesh Ambani steps down as director of telecom arm
© Reuters. FILE PHOTO: Mukesh Ambani, Chairman and Managing Director of Reliance Industries, arrives to address the company’s annual general meeting in Mumbai, India July 5, 2018. REUTERS/Francis Mascarenhas
BENGALURU (Reuters) – Reliance Industries Chairman Mukesh Ambani has stepped down as director of Reliance Jio Infocomm Ltd, the conglomerate’s telecom arm said on Tuesday.
Reliance Jio said https://refini.tv/3Nrs773 it has appointed Mukesh’s son and non-executive director Akash Ambani as the chairman of its board. Akash has been involved with the telecom unit since its launch in late 2016, where he started as a director.
India’s telecoms sector had been upended after the entry of Jio, which triggered a price war that forced some rivals out of the market and turned profits into losses.
Jio, which started out offering mobile teleservices, has been aggressively investing in services like internet broadband and forging ties with handset makers to launch low-cost smartphones and providing 5G services.
World food prices chart: World food prices have plummeted
Why are worldwide food prices rising? First, because of the current world situation. But world food prices fell sharply in...
Are hedge funds bad? Investors are disappointed in hedge funds
Are hedge funds bad? This year is sure to be one of the worst years in hedge fund history. In...
Chinese economy 2022: China will give up first place in the list of the largest importers of raw materials
Chinese economy 2022 news: China’s commodity-buying companies will be adversely affected by government debt and demographic problems. Over the next...
Positive news from the U.S. labor market has raised fears of further FED rate hikes this year
FED rate hikes and inflation this year are at record highs. The U.S. jobs data released on Friday were truly...
The strength of the U.S. dollar delayed the recession announcement
The jobs report was released at the end of last week’s work week. Economists were confident that 258,000 jobs were...
The US market today maintains growth. Inflation Ahead
The main U.S. index closed the week near the highs of recent months, the highest prices since early May. The...
Price of gold falls on expectations of further US Federal Reserve rate hike
Price of gold falls: the price of the precious metal on Monday morning slightly decreased on the prospects of further...
Goldman Sachs oil price forecast 2022: Oil price forecast worsens in Q3 and Q4
Current Goldman Sachs oil price forecast 2022: Analysts (NYSE:GS) believe another drop in Brent prices has been driven by low...
Why is oil rising in price today after a decline last week
Why is oil rising in price? The price of October futures on London’s ICE Futures Exchange for Brent amounted to...
The Balance: Bitcoin bearish trend hasn’t stopped Americans from investing more in cryptocurrencies
Analytical resource The Balance posted a report stating that 39% of U.S. investors have become more invested in cryptocurrencies, despite...
Cumberland: institutional investors give bitcoin growth predictions as high as $32,000 as early as 2022
US market maker Cumberland conducted a survey of institutional investors and found that most respondents were making bitcoin growth predictions...
Is dogecoin a good investment? Elon Musk: Dogecoin is much faster than the Bitcoin network
Is dogecoin a good investment? The CEO of Tesla again spoke out in support of Dogecoin. He stressed that the...
Voyager Digital is restructuring and preparing for sale
Cryptocurrency broker Voyager Digital said it is preparing a plan to restructure and resume cash withdrawals from the platform According...
Mike McGlone: Ethereum and Bitcoin oversold
A senior commodities strategist at Bloomberg Intelligence believes that according to technical analysis of the market, leading cryptocurrencies are selling...
Chainlink protocol developers refused to support next Ethereum fork
Ethereum is preparing to switch to PoS, and the community expects forks of the second cryptocurrency to appear on the...
PredictIt news: CFTC shuts down PredictIt prediction market in US
Important PredictIt news: The U.S. Commodity Futures Trading Commission (CFTC) has issued an order to shut down one of the...
Is bitcoin mining profitable today? Bitcoin mining difficulty drops for third month in a row
Is bitcoin mining profitable? The difficulty of mining bitcoin began to drop precipitously as the largest-capitalization cryptocurrency’s price fell below...
WazirX news: Indian authorities froze assets of WazirX
WazirX news: India’s economic intelligence agency froze assets of Binance-bought WazirX after allegations of money laundering Indian authorities have seized...
US recession and stock market. Thomas Barkin, Fed: Recession is virtually impossible
The U.S. recession and the stock market are closely linked. The key U.S. stock market indices – Dow Jones, NASDAQ...
Euro rate chart: the euro is not going into a trap
No matter how much FOMC officials try to convince investors of the Fed’s commitment to aggressive tightening of monetary policy,...
European stock market news: Europe started to lag behind the rise in U.S. stock prices
Current European stock market news: U.S. stock futures rose slightly Friday, helped by tech stocks as investors prepare for the...
Dollar rate today live: What is happening to the dollar today?
As you know, the dollar exchange rate has been lagging lately. We all wish wars would end as quickly as...
U.S. stock market capitalization 2022: Morgan Stanley advises against buying U.S. stocks
U.S. stock market capitalization by 2022 leaves much to be desired. The key U.S. stock market indexes – DOW Jones,...
EUR/USD: European Union’s main currency problems
EUR/USD: The pair stayed in the flat, as investors refrained from making big bets before the U.S. labor market data...
Asian stock market charts: Major Asian indicators are up 0.88%
What’s happening on the Asian stock market charts right now? The major Asian indicators are mostly up 0.88%. Some indicators,...
Nonfarm Payrolls and Recession: July’s NonFarm Payrolls Surprise – What Next?
As you know, nonfarm payrolls and the recession are always closely related. The U.S. Federal Reserve sees its main goal...
Stock market today: Stock Europe closes the week with a fall
Stock market today: In trading on Friday, key stock indicators in Western Europe are showing a decline amid weak financial...
Top brokers USA
Due to the strictness of the supervisory agencies to the investment market in the United States, traders who choose a...
Nasdaq 100 index rises for third straight week
The Nasdaq chart today, which reflects the value of stocks of U.S. technology companies, rose 20% from its June low....
4 Dividend Stocks Offering Double-Digit Yields: An Easy Way To Earn Passive Income
Carbon emissions and climate change are well known, so many global companies are concerned about this factor. Today it is...
- Coronavirus9 months ago
Biden administration still seeking agreement from Mexico on return of asylum seekers
- Cryptocurrency9 months ago
NFT World Records: CryptoDragons Sold Out 500 Eggs in Its Primary Pre-Sale in Тhe Тwinkling of аn Еye!
- Economy9 months ago
Analysis-Europe’s big payday remains elusive even as inflation surges
- Cryptocurrency8 months ago
In the Wilder World, Staking and Liquidity Mining Have Arrived
- Cryptocurrency9 months ago
Crypto.com is the #1 app in the Google Play Store in the US
- Cryptocurrency9 months ago
The Next Web 3.0 Social Media Will Be Built on Solana
- Stock Markets4 months ago
WeLion Cooperates with Nio to Produce Semi-Solid Battery
- Forex9 months ago
Dollar Consolidates After Strong Gains; Tapering Could Be Speeded Up