Toshiba Plunges 11% on Write Downs, Panasonic to Invest in Tesla Facility

Mukesh Buch
27 Dec, 2016
New York City

Alden Global acquired 24.8% stake in discount retailer Fred''s. Toshiba is expected to write down in billions of dollars linked to the purchase of U.S. nuclear power plants by its Westinghouse division. Tesla said Panasonic will invest $256 million in its New York production facility.

[R]11:10 AM New York – Alden Global acquired 24.8% stake in discount retailer Fred''s. Toshiba is expected to write down in billions of dollars linked to the purchase of U.S. nuclear power plants by its Westinghouse division. Tesla said Panasonic will invest $256 million in its New York production facility.[/R]

Tollbooth Index increased 65.93 or 0.6% to 11,247.83.

Earnings Review

Fred''s, Inc ((FRED)) slid 9 cents to $20.11 after hedge fund Alden Global Capital LLC acquired 24.8% stake in the discount stores operator after some ""unusual and substantial activity"" in the company''s shares.

Snapchat, Inc, the financial daily Calcalist said privately held messaging photo and video facility provider agreed to acquire Israel-based augmented reality start-up Cimagine Media for about $40 million.

Toshiba Corporation, the Japan-based diversified industrial conglomerate is likely to book a write-down or a loss between 100 billion yen and 500 billion yen or $851 million to $4.3 billion on the acquisition of the U.S. nuclear power plant by its Westinghouse division.

The Mainichi Japan reported Toshiba had a dispute with Chicago Bridge & Iron Co NV and sold CB&I Stone & Webster to the domestic company on assets valuations and business.

In the last fiscal year, the industrial conglomerate reported group net loss of 460 billion yen and in November, Toshiba lifted group net profit forecast for the current financial year to about 145 billion yen from 100 billion yen after the strong demand in flash memory chips from Chinese mobile handset makers.

Toshiba Corp stock in Tokyo Stock Exchange plunged 11.6% 391.60 yen.

Tesla Motors Inc ((TSLA)) jumped 3.3% or $6.89 to $220.23 after the electric vehicles manufacturer said Panasonic Corp will invest more than 30 billion yen or $256 million in its New York production facility to develop photovoltaic cells and modules.

The production of the first photovoltaic modules will commence in summer 2017 and will ramp to 1 Gigawatt of module production by 2019.