Let me get this right, Shaw sells Toshiba unit to get cash to prop up books, CBI buys Shaw b/c in part cash on hand, CBI uses said bash to buy back Toshiba % that Shaw just sold....
One of two parties or both parties are totally Fd up; either the writer of this story b/c it makes no sense or CBI for buying something that they already had.....
Makes no sense
It is hard to believe that CBI would be interested in anyart of Westinghouse nuclear ....makes zero sense.
By buying Shaw they already have the upper hand with the balance of plant scope on Nuclear for AP 1000 plants. Don't need to waste tying up any money for a minority piece of a business that has huge going forward challenges in developed countries.
SHAW buys a $1,000,000 house that is now worth $300,000. SHAW owes a $1,000,000 mortgage on that house. The mortgage has a clause stating that SHAW can give the house to the mortgage holder any time before February, 2013, and owe nothing. It is a no-brainer – SHAW exercises the option and dumps the house.
Now the mortgage holder owns the house and wants to sell it. The new price will not be $1,000,000 – it will be $300,000. CBI may or may not find this new price attractive. We will see.
Sterling, Shaw sold back it's 20% stake in Westinghouse to payoff the debt coming due in 2013 related to Shaw's 2006 purchase of the 20% stake. Shaw received no cash proceeds from selling the Westinghouse stake. Shaw was simply removing the Westinghouse house debt from their balance sheet.
Now, about CBI buying Shaw, that's a different topic entirely. I don't see this ending very well for CBI or their shareholders.