Toshiba shares soar on reported Hon Hai plan for US plant
Investors buy on hopes for quick sale of memory unit
TOKYO -- Toshiba shares soared in morning trading in Tokyo on Thursday, after a Japanese media report that Hon Hai Precision Industry, also known as Foxconn, plans to build a plant in the country as part of its buyout bid for Toshiba's memory business.
The shares rose 15.1 yen, or 7.2% at one point to 223.9 yen, compared with the previous day's close at 208.8 yen. They closed at 219.9 yen, up 5.3%.
The news report signaled to investors that the Taiwanese company's plan may speed up Toshiba's efforts to sell its memory business, prompting them to buy back the shares, said an equity analyst.
By proposing to build the new plant, Hon Hai hopes to demonstrate it is ready to continue making aggressive investments, even after the acquisition, the report said.