Japan Association: Toshiba and Majority Stake

japan association: I think it would be very difficult to draw up a scenario that convinces the shareholders of companies that it is a good idea to join such a consortium, said Kobayashi, who as an outside Toshiba director chairs the company's nominating committee, according to The Japan Times. The struggling electronics and machinery maker plans to sell a majority stake in the chip unit, Toshiba Memory Corp., in a bid to raise enough funding to overcome its financial crisis. The point is how a profitable scenario can be created in such an investment, Kobayashi, chairman of the Japan Association of Corporate Executives, or Keizai Doyukai, told a news conference. But within Japanese government and industry circles, there are concerns about possible outflows overseas of Toshiba's advanced flash memory technology if the unit is acquired by a foreign company. Chief Cabinet Secretary Yoshihide Suga told a news conference that INCJ, under the current system, can support an investment consortium that meets its standards. Against this backdrop, there are hopes that a consortium of Japanese companies, together with government-backed bodies such as Innovation Network Corp. of Japan, would secure a stake in the Toshiba flash memory unit. (news.financializer.com). As reported in the news.