WHEN: TODAY, TUESDAY, AUGUST 6TH
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following is the unofficial transcript of breaking news from CNBC's Scott Wapner. Following is a link to the video on CNBC.com: http://video.cnbc.com/gallery/?play=1&video=3000188607.All references must be sourced to CNBC.
SCOTT WAPNER: I HAVE SOME MORE NOW ON THE LATEST BETWEEN DAN LOEB'S THIRD POINT AND SONY AS THE BACK AND FORTH HERE CONTINUES. REMEMBER LATE LAST EVENING SONY FORMALLY REJECTED THIRD POINT'S PLAN FOR SONY TO SPIN OFF ITS ENTERTAINMENT UNIT. THIRD POINT HAD RESPONDED WITH A LETTER LAST EVENING SAYING THAT IT WAS DISAPPOINTED BUT THAT IT INTENDED TO EXPLORE FURTHER OPTIONS TO CREATE VALUE FOR SHAREHOLDERS. I CAN TELL YOU NOW THAT I AM TOLD ACCORDING TO A SOURCE CLOSE TO THIRD POINT THAT THE FIRM IS RIGHT NOW TAKING A WAIT AND SEE APPROACH. THAT IT REMAINS HIGHLY ENGAGED AND IS KEEPING ALL OPTIONS ON THE TABLE THAT IT WILL NOT RULE OUT A PROXY FIGHT THOUGH SEEMS UNLIKELY NOW GIVEN THE PROGRESS THEY HAVE MADE. THAT BEING SONY OVER THE PAST THREE MONTHS AND THE TRAJECTORY THEY ARE ON IN THE ELECTRONICS BUSINESS AND THE COMMITMENT THEY'VE JUST MADE TO IMPROVE THE ENTERTAINMENT BUSINESS. THIRD POINT I'M TOLD FROM A SOURCE EXPECTS SONY TO LAYOUT A PLAN SHORTLY TO ACHIEVE MORE PROFITABILITY IN THE ENTERTAINMENT DIVISION AND DEMONSTRATE PROGRESS AGAINST THAT PLAN BY THE TIME OF THE ANNUAL MEETING. I AM ALSO TOLD FROM THE SOURCE THAT THIRD POINT VIEWS THIS WHOLE THING AS A BIG WIN FOR SHAREHOLDERS AND THE COMPANY. A WIN WIN FOR EVERYBODY INVOLVED BECAUSE IT GOT SONY TO FOCUS ON ITS ISSUES OVER THE LAST FEW MONTHS. I'M ALSO TOLD FROM A SOURCE THE SIZE OF THIRD POINT'S STAKE IN SONY HAS NOT CHANGED AND THAT IT IS ROUGHLY 7% JUST UNDER THAT AMOUNT. SO AGAIN THE LATEST IS ACCORDING TO A SOURCE THIRD POINT TAKING A WAIT AND SEE APPROACH THAT IT REMAINS HIGHLY ENGAGED AND IS KEEPING ALL OF ITS OPTIONS ON THE TABLE A PROXY FIGHT IS ONE OF THOSE OPTIONS BUT AGAIN SEEMS HIGHLY UNLIKELY AT THE CURRENT TIME THOUGH THIRD POINT I'M TOLD IS EXPECTING SONY TO LAY OUT ITS PLAN TO ACHIEVE MORE PROFITABILITY SHORTLY AND DEMONSTRATE PROGRESS AGAINST IT BY THE TIME OF THE ANNUAL MEETING.SO WE HAVE BEEN WATCHING THIS STORY. THE SHARES FELL THEY'RE DOWN 6% NOW BUT THEY FELL ONCE SONY CAME OUT AND FORMALLY REJECTED THE THIRD POINT PLAN OVERNIGHT AND THIS IS JUST THE LATEST DEVELOPMENT IN THAT ONGOING STORY.
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