TOKYO (Reuters) -Hong Kong-based activist fund Oasis Management said on Tuesday CVC Capital’s $20 billion proposal to take Toshiba (OTC:) Corp private was “far below fair value” and urged the Japanese conglomerate to seek other offers.
The fund, an investor in Toshiba since 2016, said a price of more than 6,200 yen ($56.54) per share for Toshiba would be appropriate instead of a reported offer of 5,000 yen.
“We understand that the bid was unsolicited and not initiated by Toshiba’s board. However we believe that the company should seriously consider the offer, for the benefit of all shareholders,” Oasis said in a letter to Osamu Nagayama, chairman of the board.
Oasis joined U.S. hedge fund Farallon Capital Management, a leading shareholder, in asking Toshiba to seek multiple offers.
Oasis also urged Toshiba to set up a special committee to discuss the proposal as soon as possible. It was “highly important” that Chief Executive Nobuaki Kurumatani, a former senior CVC executive, and Yoshiaki Fujimori, a senior adviser for CVC, were excluded from the process, it added.
($1 = 109.6600 yen)
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