Effissimo Capital Management, Toshiba’s top shareholder and proxy advisory firm Institutional Shareholder Services (ISS) has kicked against Toshiba’s breakup.
According to ECM, it will vote against the plan to split the company into two. ECM stated that Toshiba’s current management and board are not capable of crafting “a strategic plan with such irreversible and profound consequences.”
ECM disclosed that the plan “may ultimately damage Toshiba’s medium- to long-term corporate value.” The group then urged Toshiba to establish trustworthy leadership first before anything else.
ISS and Glass Lewis, two influential proxy advisory firms criticized the decision.
ISS recommended shareholders vote against a proposal from the second-largest shareholder, Singapore-based 3D Investment Partners.
The firm also asks Toshiba to explore other options and solicit buyout offers from private equity firms instead.
Glass Lewis disapproves of the management-backed break-up. The firm also called for the acceptance of 3D’s proposal to restart the strategic review.
For more information, read the original story in Reuters.