Tokyo, Oct. 13 (BNA) Shares of Toshiba Corporation (6502 tons) rose on Thursday after a report that a locally led consortium is looking to buy the Japanese conglomerate for 2.8 trillion yen ($19.1 billion).
Kyodo News reported on Wednesday that a group of companies led by Japan Industrial Partners, a local private equity firm, made the offer, which represents a premium of about 26% over Wednesday’s closing price, Reuters reported.
“I’m sure the consortium can afford that price,” said analyst Travis Lundy of Quiddity Advisors on Smartkarma. “Bank funding is definitely there to pay more.”
Shares of Toshiba jumped 7.5 percent to trade at 5,519 yen as of 0126 GMT, putting it on track for its biggest one-day gain in more than a year. They rose to 5,616 yen.
The Nikkei business daily previously reported that the consortium, which includes Chubu Electric Power Co. (9502.T), had secured the right of first-rejection in its bid for Toshiba.
Asked about the report, a Toshiba spokesperson said on Wednesday that the company could not comment on candidates because doing so could undermine the fair process.
Toshiba said last month that it had received multiple written and in-depth signals of interest from potential partners in a second bidding round for strategic alternatives.
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