Toshiba shares jump; sources say auditor to sign off on earnings

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Toshiba looking up, at last?Photo: Reuters/Toru Hanai

Toshiba Corp’s shares jumped more than 9% early on Wednesday after sources told Reuters the Japanese conglomerate’s auditor was likely to sign off on its annual results.

PricewaterhouseCoopers Aarata LLC will give a “qualified opinion” endorsing Toshiba’s finances in the financial statement for the year ended in March, people with direct knowledge of the discussions told Reuters on Tuesday.

That would end a period of limbo when the auditor withheld its opinion as it checked problems that bankrupted Toshiba’s US nuclear power engineering unit in December.

However, PwC will give an “adverse” statement on the company’s internal controls with Toshiba’s results, due on Thursday, they said.

Investors have feared an adverse statement could lead to a delisting of the 140-year-old company, complicating its ability to raise money for its cash-hungry memory-chip business and jeopardising its competitiveness.

Source

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