Foxconn Says Pursuit of Toshiba Deal ‘Not Over’

The head of Taiwan’s tech giant Foxconn said Thursday its pursuit of Toshiba “is not yet over”, a day after the Japanese firm announced it preferred another group of bidders to acquire its prized chip business.

Foxconn, also known as Hon Hai, is controlled by billionaire Terry Gou and reportedly had Apple as a financial backer in its multi-billion dollar bid for Toshiba’s memory chip unit, seen as crucial for the cash-strapped Japanese firm to turn itself around.

Toshiba said Wednesday it would hold exclusive talks with a consortium of US, South Korean and state-backed Japanese investors, dashing Gou’s ambitions.

But the Foxconn chairman vowed to keep pursuing the acquisition, saying the Taiwanese firm still has a chance.

“The Toshiba case is not yet over. It is very similar to the Sharp deal,” Gou told shareholders at an annual meeting in New Taipei City.

He was referring to his takeover last year of the Japanese electronics firm for $3.7 billion, a move he described as “really worth it.”

Gou is known for his aggressive dealmaking prowess, shown by his dogged determination to acquire Sharp despite concerns over the Japanese firm’s mounting losses.

Foxconn Says Pursuit of Toshiba Deal 'Not Over'

“We still have a big chance,” he said at Thursday’s meeting of the Toshiba quest, adding there were still “a lot of variables”.

The inclusion of Japanese investors in the selected bidding group by Toshiba will ease reported government concerns about losing a sensitive technology to foreign owners.

But a Foxconn official criticized Japanese authorities for taking a protectionist approach.

“There’s no end to their corporate crisis if they are not able to open up,” said Tai Jeng-wu, who took over as president of Sharp after Foxconn’s buyout.

The Taiwanese firm is the world’s largest contract electronics maker and is best-known for assembling products for international brands such as Apple and Sony.

Gou said earlier this year he was mulling a $7 billion investment to make flat panels in the United States in a joint project with Japan’s Softbank.

He also said Foxconn aimed to increase investment in China this year to try to boost Sharp’s market share in the country.

 

Audit finds no evidence of wrongdoing in Panaya deal: Infosys

IT major Infosys on Friday said its internal audit committee has found no evidence supporting a whistleblower’s allegations of improprieties related to the Panaya acquisition.

In February, Infosys had said it will investigate claims levelled by the whistleblower in an anonymous mail to market regulator Sebi, alleging wrongdoings by the company when in buying Israeli automation technology firm Panaya.

While strongly refuting the allegations, the Bengaluru- based firm had also hired Gibson Dunn and Control Risks (GDCR) to conduct an internal investigation into the charges.

“Gibson Dunn and Control Risks have now completed their detailed and extensive Independent Investigation and as they have described in the attached document, they did not find any evidence whatsoever of wrongdoing,” Infosys said in a statement.

Infosys

It added that the company has fully cooperated with all requests for information from Sebi regarding the anonymous complaints.

In February 2015, Infosys had announced buying the Israeli automation technology company for $200 million or Rs 1,250 crore in cash.

GDCR, in its report, said it had found no evidence to support allegations regarding wrongdoing by the company or its directors and employees.

It added that there were no conflicts of interest or kickbacks and the approvals required for the acquisitions were obtained with regard to the Panaya acquisition.

“…thorough due diligence was conducted, the valuations of the target companies done by an outside financial advisor were reasonable, and the purchase prices were within the range of values determined by that advisor,” it said.

Also, it said it had found no evidence that CEO Vishal Sikka had received excessive variable compensation or incurred unreasonable expenses for security, travel and the Palo Alto office.

 

Infosys’ Audit Committee Finds No Wrongdoings In Panaya Deal

New Delhi: IT major Infosys today said its internal audit committee has found no evidence supporting a whistleblower’s allegations of improprieties related to the Panaya acquisition. In February, Infosys had said it will investigate claims levelled by the whistleblower in an anonymous mail to market regulator Sebi, alleging wrongdoings by the company when in buying Israeli automation technology firm Panaya.

While strongly refuting the allegations, the Bengaluru-based firm had also hired Gibson Dunn and Control Risks (GDCR) to conduct an internal investigation into the charges.

“Gibson Dunn and Control Risks have now completed their detailed and extensive Independent Investigation and as they have described in the attached document, they did not find any evidence whatsoever of wrongdoing,” Infosys said in a statement.

It added that the company has fully cooperated with all requests for information from Sebi regarding the anonymous complaints.

In February 2015, Infosys had announced buying the Israeli automation technology company for $200 million or Rs. 1,250 crore in cash.

Infosys' Audit Committee Finds No Wrongdoings In Panaya Deal

GDCR, in its report, said it had found no evidence to support allegations regarding wrongdoing by the company or its directors and employees.

It added that there were no conflicts of interest or kickbacks and the approvals required for the acquisitions were obtained with regard to the Panaya acquisition.

“…thorough due diligence was conducted, the valuations of the target companies done by an outside financial advisor were reasonable, and the purchase prices were within the range of values determined by that advisor,” it said.

Also, it said it had found no evidence that CEO Vishal Sikka had received excessive variable compensation or incurred unreasonable expenses for security, travel and the Palo Alto office.