Sony Stock goes BOOM AGAIN! : Up nearly 10%

[joeorc]

VGKing said:

kowenicki said:
The stock has risen today dramatically due to the suggested break up of Sony by the American Hedge fund.

Sony already said they wouldn't do this. Why isn't the stock falling?

because many see

Dan Loeb for what he is:

He is a corporate raider
The appearance of Loeb in Japan, which has been trapped in decades of economic malaise, would have been unthinkable not long ago. Activist investors, then called corporate raiders, have been part of the American business environment since the 1980s, when the fictional Gordon Gekko attacked corporate boards and executive vice-presidents in the name of public shareholders. But activist investors have not played a role in Japan. Ironically, at the time corporate raiders burst on the scene, the U.S. economy seemed to be stuck in a rut while Japan was ascendant. Japan’s Nikkei stock index hit its all-time high in 1989, two years after Michael Douglas immortalized the Gekko character in the movie Wall Street, saying “greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA.”

Activists investors like Loeb are still criticized in the U.S. A few weeks ago, for example, Loeb was knocked for allegedly supporting an effort to deny teachers and other public-sector workers guaranteed benefits while raising money from such defined benefit plans for his hedge funds. Still, some people have long wondered if corporate Japan wouldn’t benefit from having a guy like Loeb around. It seems like Loeb is up for the challenge.

http://www.forbes.com/sites/nathanvardi/2013/05/14/gordon-gekko-comes-to-japan/

He is asking for Sony to

"

To Mr. Loeb, more must be done, starting with the spinoff of Sony Entertainment. Though the division accounts for more than 40 percent of the company’s enterprise value, he said in his letter that it needed discipline to raise its profit margins. Mr. Loeb estimated that a partial spinoff of the entertainment business could bolster Sony’s share price by as much as 60 percent.

In his letter, Mr. Loeb proposed handing 15 to 20 percent of Sony Entertainment to existing shareholders. His firm would be willing to backstop the initial public offering up to $2 billion to ensure its success.

Other underappreciated assets include the company’s 60 percent stake in Sony Financial, which largely sells life insurance policies, as well as real estate holdings and stakes in other companies. And Mr. Loeb is expected to argue that Sony’s electronics division must sharply reduce costs, including by taking a cue from its protégé, Apple, in focusing on a few core products."

http://dealbook.nytimes.com/2013/05/14/hedge-fund-manager-daniel-loeb-targets-sony-for-a-breakup/?smid=tw-nytimesdealbook&seid=auto

iE: A HOSTILE TAKE over!

Of course Sony is saying No!