Tech Titans Join US Cyber Team to Fight Ransomware

An employee works at a computer in Angers, France, July 3, 2019. REUTERS/Stephane Mahe
An employee works at a computer in Angers, France, July 3, 2019. REUTERS/Stephane Mahe
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Tech Titans Join US Cyber Team to Fight Ransomware

An employee works at a computer in Angers, France, July 3, 2019. REUTERS/Stephane Mahe
An employee works at a computer in Angers, France, July 3, 2019. REUTERS/Stephane Mahe

US cybersecurity officials on Thursday said Amazon, Google and Microsoft have enlisted to help them fight ransomware and defend cloud computing systems from hackers.

The tech giants are among firms signed on to be part of a Joint Cyber Defense Collaborative intended to combine government and private skills and resources to fight hackers, according to the Cybersecurity and Infrastructure Security Agency (CISA).

"With these extraordinarily capable partners, our initial focus will be on efforts to combat ransomware and developing a planning framework to coordinate incidents affecting cloud service providers," said CISA director Jen Easterly.

US President Joe Biden last week expressed concern about the recent increase in cyberattacks, including via ransomware, which typically see hackers encrypting victims' data and then demanding money for restored access, according to AFP.

"If we end up in a war, a real shooting war, with a major power, it's going to be as a consequence of a cyber breach," Biden said.

Easterly introduced the new collaborative at a Black Hat cybersecurity conference in Las Vegas, where professionals from across the industry met to share research and innovations.

"Damages from cybercrime is costing the world trillions; and ransomware has become a scourge," Easterly said in a keynote presentation at the event.

"I want to focus on strengthening the government's collaboration with the private sector -- industry, academia, researchers, hackers."

The new center will be involved in coordinating national cyber defense and sharing insights into threats, as well as take part in joint exercises, according to CISA.

Easterly urged more computer security firms to join the collaborative effort.

The list of those who have already signed on includes Amazon Web Services, AT&T, Crowdstrike, FireEye, Google and Microsoft.



Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
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Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo

Investors gave a thumbs-down to Toyota Motor's $33 billion take-private offer for Toyota Industries on Wednesday, highlighting concerns minority shareholders would be short-changed in a landmark restructuring for Japan Inc.

Shares of Toyota Industries, a key Toyota Group company, fell 12% in Tokyo trade a day after the world's top-selling automaker unveiled plans to take the subsidiary private. The complex 4.7 trillion yen ($33 billion) transaction includes an offer price of 16,300 yen a share for Toyota Industries.

While that represents a 23% premium to the price before word of the deal broke in April, it is well below the 18,400 yen price before the offer was formally announced. Shares closed at 16,205 yen on Wednesday.

"To be clear, we welcome the attempt to clear up the parent-subsidiary governance issue. We don't like the price," said David Mitchinson, founding partner and chief investment officer of Zennor Asset Management, which owns Toyota Industries shares, Reuters reported.

When asked if Zennor would tender its shares, he said: "We will have to see how this develops as there seems strong opposition from many shareholders".

The deal will see a number of Toyota Group companies unwind cross-shareholdings, something Japanese regulators and the Tokyo Stock Exchange have long urged for better governance.

Toyota Industries has been one of Japan's most prominent examples of so-called "parent-child listings", where both a parent company and its subsidiary are listed. Governance experts say such cases are inherently unfair to minority shareholders and a drag on corporate value.

Still, the transaction comes up short in terms of corporate governance, as it both undervalues Toyota Industries' substantial real estate holdings and strengthens the founding Toyoda family's control over the broader group, market participants said.

"There's huge hidden asset value in the land and other holdings at Toyota Industries. And the price should have been much higher," Nicholas Benes, a governance expert and the CEO of the Board Training Institute of Japan, told a briefing on Wednesday.

The deal was a "prime example" of a squeeze-out of minority shareholders at an unfair price by founders and management, he said.

In a statement, Toyota Motor said the interests of Toyota Industries' minority shareholders were being considered. "Taking into account shareholder returns and the tax benefits for Toyota Industries, we have adopted a share buyback scheme" through a tender offer, it said.

It said the deal was part of a broader realignment of capital structures within the Toyota Group as it moved toward becoming a mobility company.

A new holding company will be set up for the deal. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares.

Media reports had indicated the tender offer would be around $42 billion, a substantial premium to the actual offer.

Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it.

Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the automaker and more than 5% of Denso.

Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.