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Sony: Entertainment unit is not for sale

Written by James Delahunty (Google+) @ 15 May 2013 15:21

Sony: Entertainment unit is not for sale Sony is insisting that its entertainment division is not for sale, responding to calls from a Hudge Fund for an IPO of is entertainment unit.
The rumors of such a move pushed Sony shares upward on Tuesday, but a Sony spokesman said in a statement that Sony's entertainment business is vital to its growth strategy and is absolutely "not for sale."

Sony is being urged to hear Third Point's proposal for an IPO, as the iconic Japanese firm is crawling its way back to profitability after major revamps over recent years.

Third Point, managed by billionaire Daniel Loeb, has accumulated about 6 percent of Sony's shares, worth about $1.1 billion, making it the largest stakeholder.

In a letter to Kazou Hirai, Sony chief executive, Loeb said his fund would be willing to put up an additional ~$2 billion (200 billion YEN) to support an IPO of up to a fifth of Sony's entertainment arm.

"The entertainment businesses are important contributors to Sony's growth and are not for sale," Sony said in response to Loeb's proposal. "We look forward to continuing constructive dialogue with our shareholders as we pursue our strategy."

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