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.

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