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Sony says no to spin off

Tells Loeb to sling his hook

Sony have rejected a proposal from activist shareholder Daniel Loeb to partially spin off its entertainment business.

Sony said there is still mileage in its decades-old marriage of content and hardware and promised more disclosure in its entertainment operations. Loeb's Third Point hedge fund tried to convince the company to sell as much as one-fifth of its money-making entertainment arm to free up cash to revive the electronics business. Sony would then profit from having a IPO of the new business and own a share in the new business.

Sony CEO Kazuo Hirai said in a letter to Loeb that Sony's board of directors had unanimously concluded that continuing to own 100 percent of its entertainment business made more sense.

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