In today’s briefing:
- Daiho Corp (1822) A GIANT Transaction Which Is Not What It Looks Like. Smells Bad.
- Toshiba (6502 JP): National Security Overrides the Interests of Speculators
Daiho Corp (1822) A GIANT Transaction Which Is Not What It Looks Like. Smells Bad.
- Daiho Corp (1822 JP) has announced a deal which is not quite what it looks like.
- And despite a buyback of more than 50% of shares outstanding, and an “accretive” sale to another party at a higher price, it is a governance disaster.
- And existing shareholders have an out, but it is complicated. If you own the stock, or you look at risk arb, or activism, this may be worth a read.
Toshiba (6502 JP): National Security Overrides the Interests of Speculators
- Toshiba possesses technologies of vital importance to Japan’s economic competitiveness and national security: nuclear power, quantum cryptography and discrete semiconductors.
- Any changes in ownership or management that would undermine or leak these technologies would probably not be tolerated.
- LightStream’s Mio Kato writes that Toshiba itself is attractive but the drama surrounding it is decidedly looking bad for business. He remains negative on the stock.
Before it’s here, it’s on Smartkarma
