Sony to assess spin-off proposal for entertainment business: Nikkei

Tue May 21, 2013 4:00pm EDT
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(Reuters) - Sony Corp is considering evaluating a proposal from top shareholder Third Point LLC to spin off part of its movie and music business, Japanese daily Nikkei reported.

Sony's U.S. listed shares rose 9 percent on Tuesday on the New York Stock Exchange.

Billionaire hedge fund investor Daniel Loeb last week called on the company to spin off its lucrative entertainment arm, setting the stage for a clash between his activist Wall Street fund and management at the Japanese electronics maker.

Sony declined to comment when contacted by Reuters.

Loeb said his Third Point hedge fund had accumulated a little more than 6 percent of Sony's shares - a stake worth $1.1 billion - making it the largest stakeholder in the inventor of the Walkman portable music player and Trinitron TV.

Sony shares were trading at $22.87 in afternoon trading.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Saumyadeb Chakrabarty)

The logo of Sony Corp. is seen at an electronics store in Tokyo May 9, 2013. REUTERS/Toru Hanai