Tokyo, Feb 24 (IANS) Japanese tech giant Toshiba is considering declaring bankcrupt its nuclear power branch in the US, whose multi-million dollar devaluation will result in heavy losses, the company announced on Friday.
The Japanese conglomerate has weighed up this move as one of its options in the framework of reviewing the operations of its nuclear unit, which is the root of its financial problems, according to company sources.
The news shot up the price of Toshiba shares at the Tokyo Stock Exchange, where they soared to 12 per cent after the drop of more than 4 per cent on Thursday, Efe news reported.
The company's shares had lost more than half of its value since it announced in December a multi-million dollar devaluation of its nuclear unit assets in the US, which has led to the reduction of such operations as well as the resignation of its president, Shigenori Shiga.
The devaluation of Toshiba's nuclear energy branch is due to the increased costs of labour and construction of the new nuclear plants in the US.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.