Hedge fund calls for independent Sony board

New York hedge fund Third Point says it has raised its stake in Sony and has urged the Japanese company to create an independent board to run a partially spun-off entertainment arm with Sony's chief executive, Kazuo Hirai, as its chairman.

Third Point, a $13 billion hedge fund founded by billionaire investor Daniel Loeb, last month proposed that the struggling electronics maker conduct an initial public offering for its profitable music and movie business. It said such a move could boost Sony's share price by as much as 60 per cent.

In a second letter to Mr Hirai today, Mr Loeb added to his proposal by suggesting that Sony adopt "a semi-independent governance structure". He argues that Sony has failed to find the synergies that the shift to entertainment had promised when it bought Columbia Pictures 24 years ago. – (Reuters)