The Dallas Morning News
Toshiba warns it may pull the plug
Toshiba, a pillar of the modern Japanese economy whose roots stretch back to the country’s industrial stirrings in the 19th century, warned Tuesday that a disastrous foray into nuclear power may have crippled its business beyond repair.
In a stock market filing in Japan, Toshiba said losses associated with Westinghouse Electric, its troubled U.S. nuclear power subsidiary, had created “substantial uncertainty” over its ability to continue as a going concern. The declaration lifts the stakes as Toshiba seeks outside investors for its coveted microchip business, a portion of which it is selling off to raise cash and stave off disaster.
Toshiba’s uncertain fate is another blow for a country that has seen its dominance in a range of technologies eclipsed by rivals in South Korea and China.
Toshiba said it hoped the sale of shares in its chip division, its crown jewel, would alleviate the uncertainty over its future. While Toshiba has not said exactly how much of the business it will sell, even a minority stake is expected to be worth several billion dollars.