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Third Point ramps up pressure on Sony to spin off chip business

Activist fund also raises concern over Japan's tougher foreign investment rules

Sony has rebuffed Third Point's appeal to spin off its semiconductor segment due to the anticipated demand from 5G mobile phones.   © Reuters

NEW YORK -- U.S. hedge fund Third Point has reiterated calls for Sony to spin off its chip segment and sell holdings in other units deemed a drag on corporate value, setting up a potential showdown at the next shareholders meeting.

Daniel Loeb's activist fund, which held a $1.5 billion stake as of June, outlined the need for an overhaul of Sony's business profile in an investor letter dated Thursday. The Japanese technology group's share price has jumped nearly 40% since the end of June.

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