Toshiba’s Plan to Split Garners Growing Opposition (1)

The opposition to Toshiba Corp.’s proposal to split into two companies is mounting, with a second influential proxy advisory firm and yet another major shareholder coming out against the plan.

Glass Lewis & Co. urged investors to vote against the plan because the process that led to it relied on “flagrantly dubious reasoning” and sidestepped investor feedback and private equity buyout interest. Instead, the company endorsed “a complex, costly and poorly reasoned three-way split” before altering its plan shortly after to split into two instead, Glass Lewis said in its report Thursday.

The advisory firm also recommended investors support ...