Tainted by crises and scandals, Toshiba's best option is a leveraged buyout

Having major shareholders Elliott and Farallon on the board makes this reform far more possible than any other option. Foreign investors have previously won big after helping Toshiba out

One of the most storied global companies, Toshiba Corp., is set to get a serious makeover. Global hedge funds and private equity firms including the likes of Paul Singer’s Elliott Management Corp. and Farallon Capital Management LLC are circling to, as activists like to call it, unlock value. Change is looking like a real possibility after months of chaos and uncertainty.

It stands in stark contrast to the company’s recent past, which has been tainted by a series of crises and scandals — from accounting issues to a near brush with bankruptcy and a damning report that blew the cover