By Makiko Yamazaki and Ritsuko Ando
Instead, the company said the letter stated CVC “would step aside to await” Toshiba’s guidance.
“This letter contained no specific and detailed information capable of detailed evaluation,” Toshiba said. “As this preliminary proposal lacks the required information the board has concluded it is not possible to evaluate it.”
It was unclear whether CVC’s letter meant it was backing away from its earlier offer. A representative for CVC in Japan declined to comment.
A Toshiba source said the letter meant CVC’s proposal was unlikely to proceed further, as the fund’s offer was unsolicited to begin with.
CVC’s proposal had sparked a strong backlash from Toshiba managers, prompting them to lobby the government and its lenders against it, sources have said.
Toshiba CEO Nobuaki Kurumatani resigned over the proposal from CVC, his former employer, amid criticism the offer, which promised to retain management, was partly designed to shield Kurumatani from activist shareholders.
Toshiba said it would continue to consider and evaluate any credible offers. But for now, “being a publicly traded company provides a stable equity structure,” it said.
It also denied that Toshiba’s current shareholder structure, with a large activist shareholder base, had aversely affected its corporate value.
Activist investors won a vote at an emergency shareholders’ meeting last month to establish an independent probe into whether management had previously pressured shareholders to support desired board nominations.
(Reporting by Makiko Yamazaki. Writing by Ritsuko Ando. Editing by Jason Neely and Mark Potter)