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Technology

Sony rejects investor demand for chips business spinoff

Company rebuffs hedge fund Third Point even as market for its sensor unit soars

Sony has rejected a demand from Daniel Loeb's activist hedge fund Third Point that it spin off its chipmaking unit, saying it is "crucial" to the company's growth.    © Reuters

TOKYO -- Sony on Tuesday rejected calls by U.S. activist investor Daniel Loeb to spin off its chip business, arguing that it is a "crucial growth driver" for the Japanese electronics and entertainment company.

Sony, in which Loeb has amassed a $1.5 billion stake, equivalent to almost 2% of the company, wrote in a letter to shareholders that retaining the chips business was the "best strategy for enhancing Sony's corporate value over the long term."

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