Sony split pressure increases
June 18, 2013
The US hedge fund manager urging Sony to spin off its film and music arm, has stepped up pressure days before its annual shareholders’ as he increases his ownership stake.
In a letter to Sony’s management Daniel Loeb said he had bought an additional 5 million shares in the company, raising his holding to 7 million shares or 7 per cent. His Third Point fund was already Sony’s biggest investor, having built a $1.1 billion position that it first made public last month.
“Given our large stake, we reiterate our offer to serve on Sony’s board of directors,” Loeb wrote.
Loeb wants Sony to turn its entertainment business into a separately listed company and sell off 15-20 per cent to investors. In a previous letter to Kazuo Hirai, Sony’s president, he suggested that the company use the money it would raise to strengthen its unprofitable consumer electronics operations.