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Toshiba may delay chip auction after widening sale to majority stake sou...


´╗┐Toshiba Corp (6502. T) may delay the sale of its prized flash-memory chip unit after the conglomerate said it would consider selling most, even all, of the marquee business, a person with direct knowledge of the matter said. "It's moving in that direction (of a delay)," the source said late on Wednesday, on condition of anonymity as the discussions weren't public. As Toshiba's plans for the sale have changed, "the bidders are having various thoughts."The TVs-to-nuclear conglomerate is scrambling for cash to stay in business as a multi-billion-dollar hole has emerged in recent months in its nuclear business. Toshiba shares sank 9 percent on Wednesday after the company said it would book a $6.3 billion hit to its U.S. nuclear unit and would consider selling more than the originally planned stake of less than 20 percent of the flash-memory chip business. Changing the rules of the chip auction, which sources have said has generated bids of 200-400 billion yen ($1.8-$3.5 billion), could push the sale beyond Toshiba's planned deadline of the March 31 end of the business year, the source said. Loosening the deadline would ease concerns about trying to hurry any antitrust reviews, increasing the number of potential buyers and potentially improving the offers, he said. Toshiba has accepted that it may remain in negative net worth through the end of the business year, the source said, which could see its shares demoted to the second section of the Tokyo Stock Exchange. As a result, the source said, it would have to convince its lenders to keep the funds coming. The result could also be a rethink of the whole auction as some bidders may now want management rights or have other responses to Toshiba throwing open the bidding to include a majority stake, he said. The change of direction by Toshiba - facing a March 27 deadline to avoid a delisting - has prompted investors to question whether the company would have a long-term future without control of the unit and could well shake up the bevy of suitors interested in a piece of the world's biggest NAND chip producer after Samsung Electronics Co Ltd (005930. KS).

"Usually in a corporate turnaround plan, the company would keep its most competitive business after selling non-performing businesses," said Masayuki Kubota, chief strategist at Rakuten Securities."This turnaround plan gives no hope for Toshiba's future," he said. Taiwan's Foxconn (2317. TW), formally known as Hon Hai Precision Industry Co Ltd, is among the companies and funds that were bidding for the smaller stake, a source with direct knowledge of the offer said, declining to be identified because he is not authorized to talk to the media. Foxconn officials were not immediately available to comment. Other bidders include SK Hynix Inc (000660. KS), Micron Technology Inc (MU. O) and private equity firm Bain Capital, sources have said previously.

Foxconn, which last year bought a controlling stake in Japanese panel maker Sharp Corp (6753. T), may find it easier than other corporate bidders to buy a large stake as it is not a major memory chip maker and could avoid any lengthy anti-trust review. WAIVER FAVOR Toshiba's new openness toward selling more of its chips business comes as the beleaguered conglomerate failed to deliver audited third-quarter earnings as scheduled on Tuesday, saying it needed more time to look at potential problems at its Westinghouse division. The expected $6 billion writedown will also wipe out shareholders' equity. It has been granted an extension until March 14 to submit audited figures but would face a delisting if it still failed to file within eight business days after that.

Wednesday's share slide left Toshiba with a market value of 889 billion yen

Yum Brands same store sales miss as fewer dine at Pizza Hut


´╗┐Yum Brands Inc (YUM. N), the owner of KFC and Taco Bell, reported a lower-than-expected rise in quarterly sales at established restaurants worldwide as fewer diners ate at its Pizza Hut chain. Sales at restaurants open for at least one year rose 1 percent in the fourth quarter ended Dec. 31, compared with a 2.1 percent rise analysts polled by Consensus Metrix had expected. Same-store sales rose 3 percent at KFC and Taco Bell, but this was tempered by a 2 percent decline at Pizza Hut."KFC and Taco Bell had relatively strong performance in December, despite difficult U.S. industry conditions," Chief Financial Officer David Gibbs said. U.S. restaurant chains have been struggling with competition from convenience stores, supermarkets and meal kit delivery services such as Blue Apron and Chefd.

Minimum wage increases have also forced restaurants to raise menu prices while supermarkets have been able to pass on lower food costs to shoppers. The latest-quarter results are Yum's first since spinning off its China business in November.

Yum's income from continuing operations fell to $285 million in the quarter from $290 million a year earlier. Diluted earnings per share from continuing operations was 76 cents per share compared with 66 cents per share. Earnings excluding special items was 79 cents per share.

Coca-Cola's quarterly revenue beats on higher North America demand Coca-Cola Co reported better-than-expected quarterly revenue, helped by higher sales of its sodas in North America, its biggest market.

U.S. court blocks Anthem-Cigna merger, dealing blow to consolidation A federal judge on Wednesday ruled against U.S. health insurer Anthem Inc's proposed $54 billion merger with smaller rival Cigna Corp , derailing an unprecedented effort to consolidate the country's health insurance industry.

Exclusive: Lockheed says U.S. may take 'fresh look' at its India F-16 plan NEW DELHI/WASHINGTON U.S. defence firm Lockheed Martin wants to push ahead with plans to move production of its F-16 combat jets to India, but understands President Donald Trump's administration may want to take a "fresh look" at the proposal.