Sony Corp stocks fell as much as 3.1% in Japan trading after the Nikkei announced that Sony is set to reject the Daniel Loeb proposal to sell part of the unit through an initial public offering. During a recent board meeting, a number of Sony directors objected to the proposal of billionaire Daniel Loeb's Third Point LLC hedge fund to trade a unit of the company that distributes and creates films, music and TV shows. Sources are saying that a formal announcement of the rejection is expected to come out soon.
"The Sony board and management continues to review the Third Point proposal, and we have no comment on this report," said Sony's New York-based spokesman, Jim Kennedy.
Loeb said that he plans to contend to an independent board and shareholders that will force the management of Sony's television, film and music operations to be more disciplined and approachable when it comes to investors.
"Given entertainment's perpetual underperformance, perhaps Sony's reluctance to discuss it candidly stems from (understandable) embarrassment," Loeb wrote in the letter.
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