Toshiba Corp announced on Tuesday that CEO Satoshi Tsunakawa had resigned, citing internal opposition to the company’s revised restructuring plans as well as long-standing shareholder dissatisfaction.
However, the company’s present break-up strategy, which has been approved by the board, will continue, according to new temporary CEO Taro Shimada.
Foreign hedge fund shareholders, many of whom favour a sale to a private equity company, have slammed the scandal-plagued conglomerate’s first plans to split into three announced last year. According to two sources familiar with the situation, a revised proposal last month that called for the company to be split into two firms and the sale of other businesses sparked internal dissent.
According to the people, who were not authorised to speak to the media and declined to be identified, there were concerns within Toshiba that its planned sale of units such as its elevator business would leave the corporation with just low-margin industries.
When asked about internal dissent, Toshiba stated that it is confident that the reorganisation plan it has revealed is the best option for the company, but declined to elaborate.
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