Japan’s Toshiba Corp files twice-delayed business results without an endorsement from its auditor, increasing the likelihood that the nuclear-to-TVs conglomerate will be delisted. Ryan Brooks reports.
An ominous warning from Toshiba on Tuesday.
The troubled Japanese tech giant warning its future might be at risk after it filed earnings for first nine months of the fiscal year even though they weren’t signed off by its auditors
Net loss was worse than expected at nearly 5 billion dollars.
The company has already delayed its earnings twice because its books are in such a mess…
And authorities could now force it to delist from the Tokyo stock exchange.
(SOUNDBITE) (English) CIBC, HEAD OF FX STRATEGY, JEREMY STRETCH, SAYING:
“If it is de-listed I think the ability of the management to restructure the group in order to facilitate it as an ongoing concern, albeit on a much smaller basis, inevitably I think will be, if not fatally, then seriously compromised.”
Toshiba is looking to sell its profitable microchips division to balance the books.
The standout bidder: Foxconn, said to be lining up a 27 billion dollar bid…
A prospect that Tokyo could have something to says about.
(SOUNDBITE) (English) REUTERS BREAKINGVIEWS ASIA EDITOR, QUENTIN WEBB, SAYING:
“Having Foxconn, which is a Taiwanese buyer, which is not really big in semiconductors, there might be kind of more disquiet in the Japanese government about leakage of technology to effectively a company with very big mainland Chinese operations.”
Microchips have long been the jewel in Toshiba’s crown –
But selling the division…