TOKYO: Toshiba Corp is considering splitting in half instead of three and offloading its air conditioning business, the Japanese industrial conglomerate says, in an attempt to overcome shareholder opposition to its turnaround plan.

       The changes would mark the latest twist in Toshiba’s drawn out battle with foreign shareholders, many of them activists and hedge funds, and highlights the once-mighty conglomerate’s fight to revive itself after a dramatic fall from grace.

       The Nikkei reported earlier that Toshiba will sell its 60% stake in Toshiba Carrier to United States counterpart Carrier Global Corp for around 100 billion yen (US$870mil or RM3.64bil), adding that the two companies have reached an agreement.

       Since announcing the three-way split in November, Toshiba has examined the details of the strategic reorganisation and continued its portfolio review, it said in a statement.

       The reported changes “remain strategic options for Toshiba,” it said, adding that it would explain the details in investor briefings today and tomorrow.

       Under the new plan, Toshiba would break off its device business, including the power chip unit, the Nikkei said.

       Previously it had planned to split into three companies: one for energy and infrastructure, one for devices and one for flash memory chips. By splitting into two, Toshiba will save more money that it can return to shareholders, the newspaper said.

       A two-way split could be carried out with board approval under legislation recently revised to expedite break-ups when the book value of assets to be spun off is worth less than a fifth of a company’s total assets.

       The three-way split would have required support of two-thirds of shareholders, as the assets of the new energy and infrastructure company would account for more than a fifth of the total. — Reuters