Toshiba Corp.'s management has opted for a two-way split to "suit themselves," a top 15 shareholder in the company said on Friday, slamming what it described as a lack of trust and management accountability at the conglomerate.
The shareholder spoke on condition of anonymity.
The Nikkei earlier reported that Toshiba is considering splitting in half instead of three and will offload its U.S. air conditioning business to U.S. counterpart Carrier Global Corporation for around ¥100 billion ($870 million), in an attempt to overcome shareholder opposition to its turnaround plan.
The change would mark the latest twist in Toshiba's drawn out battle with foreign shareholders, many of them activists and hedge funds, and highlights the once-mighty conglomerate's fight to revive itself after a dramatic fall from grace.
A Toshiba spokesperson said it was true that it was reviewing its portfolio but that nothing had been decided. The company would give further details at an investor day on Monday, the spokesperson said.
By splitting into two, Toshiba will save more money that it can return to shareholders, the newspaper said.