Hedge fund manager Dan Loeb is calling for the break-up of Japanese entertainment and electronics giant Sony.
The New York Times
reported that Loeb's New York-based hedge fund firm Third Point, which is a 6.5% shareholder of Sony, is pressing the company to spin off part of its entertainment unit in an effort to "sharpen the company’s focus and lead to higher profit margins, while helping to revive the core electronics business."
In a letter hand-delivered to Sony executives, Loeb insisted that a partial spinoff of company's entertainment business could bolster Sony’s share price by as much as 60%.
Kazuo Hirai, the chief executive of Sony, is scheduled to make a presentation about the company’s turnaround plan next week.
New York-based Third Point’s AuM reached its record high in November with $10 billion in assets.