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U.S. hedge fund Farallon accuses Toshiba of 'backpedaling' on strategy

FILE PHOTO: The logo of Toshiba Corp. is seen at the company's facility in Kawasaki, Japan February 13, 2017. REUTERS/Issei Kato

TOKYO (Reuters) - Farallon Capital Management on Tuesday accused Toshiba Corp on Tuesday of “backpedaling” over its investment strategy, a charge the Japanese firm has dismissed.

Farallon, Toshiba’s second largest shareholder, has called for an extraordinary meeting to seek shareholders’ approval over what the fund had said is the Japanese firm’s shift towards large-scale mergers and acquisitions.

Toshiba said last month it had made no change in its policy on investment and shareholder returns. It says the issue is the result of a “misunderstanding” by the shareholder.

In its presentation regarding its call for an extraordinary meeting, Farallon said: “This shift in policy, and the apparent backpedaling, has led to further trust issues and concerns.”

Toshiba will hold the meeting on March 18 to vote on separate proposals from Farallon and top investor Effissimo Capital Management, which wants an independent probe into the company’s annual shareholder meeting (AGM) last year.

Reporting by Makiko Yamazaki; Editing by Edmund Blair

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