CVC Capital Partners, KKR and other PE firms have made a $ 20 billion offer for the sprawling Japanese giant.
Such a move would put an end to years of tragedy for the group, which operates the country’s nuclear power plants.
A financial scandal in 2015 was then followed by the bankruptcy of the company two years later and a recent battle with shareholders, which it lost.
If a deal is struck, it would be the latest in a series of mergers and acquisitions fueled by the silver wall that private equity firms have lifted in recent years from investors looking for better yields in a low interest rate environment.
Toshiba’s shares were halted today, and the group said it would consider the proposal at a board meeting later today.
Shares can often rise around the world during major corporate takeovers due to the hope that more deals will follow elsewhere.
The FTSE 100 index was only to open modestly, however, with traders on the IG platform calling it 11 points at 6831.2.
Nervousness continues over speculation that the US Federal Reserve may consider starting to raise interest rates next year. The bond markets then forecast a rise, but many investors fear that it is too aggressive. It is not yet clear enough that the US and global economies will have recovered sufficiently from the Covid crisis to support rising borrowing costs by then, they say.
Eurodollar futures suggest a rise by the end of 2022, followed by three more by early 2024. That’s a faster timeline than the Fed itself has predicted, but comes after strong labor market data and surveys suggesting that the US service and manufacturing sectors are expected to experience strong recoveries.