Sony has turned away a spin-off for its entertainment division after a New York-based hedge fund proposed a funded public offering to the Japanese company.
Third Point offered up to $2-billion to help support an IPO spin-off for Sony Entertainment in order to help Sony reduce its debt.
“Our plan shifts that paradigm and we believe, if managed properly, it could result in as much as 60 percent upside to Sony’s share price,” Third Point said in a statement.
A Sony official responded, saying that its Entertainment division is vital to the company’s growth, and that it is not for sale.
While Sony declined Third Point’s offer, the hedge fund company is the largest owner of Sony shares, valued at $1.13 billion.
Source: Reuters
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