Sony investor calls for company to break up

<p>Daniel Loeb has recommended the break-up of Sony.</p>

A major investor in Sony has called for the company to be broken up, with its entertainment business sold off in order to support its electronics arm.

Daniel Loeb stated that up to 20 per cent of the entertainment side of Sony ought to be sold, as this would be a boost for the rest of the company.

In a letter published by the New York Times, he said: "To maximise Sony's overall success, we believe the company should change the structure of its ownership of Sony Entertainment."

Mr Loeb is the founder of US hedge fund Third Point, which holds a 6.5 per cent stake in Sony. The US share price of the firm jumped by ten per cent in trading yesterday.

Sony reported its first annual profit for five years last week, but analysts pointed to the weakening yen against the dollar as one of the reasons for its improvement in recent months.

Shares in Sony will open at 20.76 when the New York Stock Exchange opens today (May 15th).

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