On Tuesday, Third Point LLC stated that it had raised its stake in Sony Corp. The New York based hedge fund said that it also asked for an opportunity to present with the Sony board a proposal for a partial spin-off of the firm's entertainment unit.
Third Point said in a letter to Sony CEO Kazuo Hirai, that it has increased its stake to 70 million shares that is valued at US$1.4 billion.
In a letter reviewed by Reuters, the hedge fund said that with a larger stake, they would like to reiterate their offer to serve on the board of directors for Sony Corp.
Chief Executive Officer Kazuo Hirai said in a press briefing last Wednesday that Sony would assess a proposal from its largest shareholder, Third Point LLC. The hedge fund is owned by billionaire Daniel Loeb.
Loeb argued that a partial spin-off of Sony Entertainment could boost Sony's stock price by 60%. He also added that it would free cash to help the struggling electronics division.
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