Shares of Toshiba surged 18% Wednesday on news of a proposal by Luxembourg-based private equity firm CVC Capital Partners to make a takeover bid for the Tokyo-based conglomerate.
Toshiba confirmed in a statement it had received a tentative proposal from CVC Tuesday, adding it would seek further details and seriously consider any offer.
A spokeswoman for Toshiba declined to comment on media reports that the bid would come in at about $20 billion.
In trading Wednesday, 1.4 million Toshiba shares changed hands, the lowest turnover since Jan. 20, as the stock quickly hit its daily limit-up gain of ¥700 ($6.37), closing at ¥4,530. Under Japanese stock exchange rules, a stock that closes the prior session at less than ¥5,000 can only rise by up to ¥700 a day.
The 18% jump in Toshiba's stock price lifted the company's market capitalization to ¥2.06 trillion, or just under $19 billion.
Nobuaki Kurumatani, Toshiba's president and CEO, joined the firm three years ago from CVC, where he was president of CVC Asia-Pacific Japan for just under a year.
A CVC spokesman could not immediately be reached for comment.