TOKYO Feb 14 Toshiba Corp will on
Tuesday uncover the scale of a multi-billion dollar writedown
from cost overruns at its U.S. nuclear arm, along with its
recovery plans as the Japanese industrial conglomerate scrambles
Toshiba warned of a potential writedown in December, a year
after a $1.3 billion accounting scandal. Sources familiar with
the matter say the charge will be as high as 700 billion yen
($6.2 billion) - a sum that would wipe out the group's
Japan's Nikkei business daily reported on Tuesday that the
TVs-to-construction conglomerate would warn alongside its
quarterly earnings that its future is unclear.
Toshiba may also sell an interest in British nuclear venture
NuGeneration Ltd to Korea Electric Power Corp (Kepco)
, the newspaper said. Reuters reported earlier this
month that Toshiba was seeking at least a partial exit from the
Asked about the Nikkei report, a Toshiba spokesman declined
to comment. A Kepco spokesman declined to comment, as "Toshiba's
nuclear business plan has not been crystallised yet."
Toshiba shares fell more than 4 percent in early trade on
Tuesday, underperforming a roughly flat broader market in Tokyo.
With 190,000 workers employed at some 500 units, Toshiba may
be too big to fail immediately. But like other Japanese firms
that have dodged financial collapse, such as Sharp Corp
, Toshiba could face protracted pain.
Chief Executive Satoshi Tsunakawa will on Tuesday outline
the prospects for Toshiba's nuclear arm and is expected to
update on efforts to raise capital, including the sale of a
stake in its memory chip business in Tokyo.
Toshiba has offered a 19.9 percent stake in its chips
business to investment funds and rivals including Bain Capital,
SK Hynix and Micron Technology, sources have
($1 = 113.7100 yen)
(Reporting by Makiko Yamazaki in Tokyo, Jane Chung in Seoul and
Rishika Sadam in Bengaluru; Writing by Tim Kelly; Editing by
Clara Ferreira Marques and Stephen Coates)