Toshiba shares rise following reports of a possible $19 billion buyout

Toshiba shares on Thursday (October 13) surged by seven per centin afternoon trade following a report that a domestic investor-led group was looking at a $19 billion bid in a potential deal that could lead to foreign activist shareholders being bought out after years of tension.

A consortium led by private equity firm Japan Industrial Partners has been given preferred bidder status in the second round of bidding, a source familiar with the matter told Reuters. Japan Industrial Partners declined to comment.

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Shares in Toshiba Corp are on track for their biggest one-day gain in more than a year after having risen about 17 per cent this year.

The bid figure of 2.8 trillion yen ($19.06 million) cited by the Kyodo news agency represents a premium of 26 per cent to Wednesday's (October) closing price.

(With inputs from agencies)

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