Mon, Dec 08, 2003 - Page 10 News List

Toshiba may spin off or sell computer business

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Toshiba Corp may form a different company for its personal-computer business or sell off the unit, Barron's reported, citing analysts, including Merrill Lynch & Co's Hiroshi Yoshihara.

The profit margin for Tokyo-based Toshiba's PC business is shrinking in the face of competition from Dell Inc and Hewlett-Packard Co, Barron's said.

It noted that profits at Toshiba increasingly are provided by so-called computer peripherals like hard drives and devices that create DVDs and CDs.

Toshiba could spin off the PC division as a separate company, sell it, or have a Taiwanese company like Compal Electronics Inc. make the computers, the weekly newspaper said, citing analysts, including Yoshihara and Fumiaki Sato of Deutsche Securities.

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