Toshiba Faces Unclear Future

Toshiba shareholders on Thursday voted down competing proposals -- one presented by management and the other backed by activist shareholders, leaving the future direction of the embattled Japanese conglomerate uncertain. From a report: Management's plan to spin off Toshiba's devices unit and the separate call to seek buyout offers had both failed to gain the required 50% of the vote. The untidy outcome ensures there will be no immediate end to a four-year scandal-filled battle between management and foreign activist hedge funds, while underscoring deep divisions among Toshiba shareholders. Opposition to Toshiba's plans to break up the company had been widespread and included proxy advisory firms, and its failure comes as no surprise. But the outlook for Singapore-based 3D Investment Partners' proposal that Toshiba solicit private equity buyout offers or a minority investment had been less clear cut. Although 3D and Toshiba's other top two shareholders had supported the quest for a buyout offer, proxy advisory firm Institutional Shareholder Services (ISS) had advised against it, saying the proposal "appears overly prescriptive and premature."

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