NA: Toshiba buyout bid faces hurdles, including CVC conflict of interest

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NIKKEI ASIA reports:

 The $20 billion buyout offer for Toshiba by CVC Capital Partners gives the Japanese conglomerate a chance to part ways with activist investors and focus on growth strategy. But the deal faces a number of hurdles involving investors, management and regulators.

Toshiba confirmed Wednesday that it received an “initial” proposal from the global private equity firm. “Discussions have only just begun,” a company executive said after a board meeting Wednesday morning.

CVC is aiming for a 30% premium to Toshiba’s share price, which would put the value of the deal at nearly 2.3 trillion yen ($20.9 billion) based on Tuesday’s close — a sizable investment that would be risky for CVC on its own. The firm is expected to recruit other investment funds to participate, and names such as KKR have been floated as potential candidates…

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