IHI may divest stake in Westinghouse
Contract allows the machinery maker to sell to Toshiba
TOKYO -- Heavy machinery maker IHI may sell its 3% stake in Westinghouse Electric to Toshiba, parent of the troubled U.S. nuclear power business, as allowed under a contract signed between the Japanese companies.
Toshiba is scheduled to release its earnings results for the April-December period on Feb. 14, when it will disclose the size of losses tied to Westinghouse. IHI intends to wait for the announcement and then may take steps to avoid its own losses, Managing Executive Officer Mikio Mochizuki said Wednesday.
When IHI acquired the Westinghouse stake for $162 million in 2006, it obtained the right to call on Toshiba to buy the shares.