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Stocks

Market Scramble: Canon's audacious bet challenges market fixated on returns

TOKYO -- Canon is taking a gamble with the planned acquisition of Toshiba Medical Systems, choosing to spend a hefty sum on future growth even as investors seem to favor generous shareholder returns instead.

     Since Thursday morning, analysts who cover Canon stock have been flooded with questions from investors trying to make sense of the purchase. Their main concerns involve whether the Toshiba subsidiary is really worth the price of over 700 billion yen ($6.14 billion), and whether the deal will affect future shareholder returns.

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