TOKYO (Reuters) -A senior member of Japan’s ruling party on Thursday accused activist investors in Toshiba Corp of focusing only on short-term profits and called for better monitoring of such investors to protect economic security.
The comments from Akira Amari, a former economy minister and an influential lawmaker in the ruling Liberal Democratic Party, are some of the sharpest yet from Tokyo after explosive revelations this month that Toshiba’s management colluded with the government to put pressure on foreign activist investors.
“There should be strict monitoring. We need to watch carefully so that Japan’s security is not threatened,” Amari told Reuters in an interview.
He said it was “not right” that Toshiba was reliant on activist investors who were only interested in short-term profits and did not understand the importance of the conglomerate to Japan’s “economic intelligence”.
“Activist investors only think about selling high,” he said.
Toshiba’s management has been under pressure from activist funds since it sold 600 billion yen ($5.4 billion) of stock to dozens of foreign hedge funds during a crisis stemming from the bankruptcy of its U.S. nuclear power unit in 2017.
Singapore-based Effissimo Capital Management, 3D Investment Partners and U.S. hedge fund Farallon Capital Management together own more than 20% of Toshiba.
Amari said Japanese investors, not foreign activists, should have invested in Toshiba to save the company.
Toshiba holds a shareholder meeting on Friday where its board chairman Osamu Nagayama faces a crucial vote over his reappointment.
($1 = 110.8600 yen)
Reporting by Takashi Umekawa and Kaori KanekoEditing by David Dolan and Mark Potter
