Nidec, the embattled Japanese electric motor maker, is being urged to consider putting itself on the auction block by an activist investor, a sign confidence is waning in management’s ability to recover from a long-simmering accounting scandal. Oasis Management, which owns 8% of the manufacturer, called on Nidec’s board to hire financial advisers and solicit preliminary, nonbinding proposals from strategic buyers and private equity firms. The move represents an escalation in pressure — particularly on independent board directors — by Oasis, which has pushed for stronger governance and measures to unlock value.
Nidec has been mired in turmoil after probes uncovered widespread fraud in its accounting and quality control at subsidiaries in Italy, Switzerland and China, as well as in its car inverter business.
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