By Makiko Yamazaki
TOKYO (Reuters) -Toshiba Corp said on Monday it now aims to split into two companies instead of three as previously planned.
It wants to split off its device business but no longer plans to split off its infrastructure business.
The Japanese conglomerate now also plans to increase shareholder returns to 300 billion yen ($2.6 billion) over the next two years which compares to an earlier target for returns of 100 billion yen.
It also plans to begin the sale process for its elevator and lighting business and added that it no longer sees Toshiba Tec Corp, which makes point-of-sale systems and copiers, as a core business.
Earlier it announced that it will sell almost all of its 60% stake in its air conditioning unit to its U.S. joint venture partner Carrier Global Corp for $870 million.
The plan to split into two, which it confirmed on Friday it is considering, is likely to face angry pushback from foreign hedge funds, many of whom would prefer that the company be taken private.
($1 = 115.2800 yen)
(Reporting by Makiko Yamazaki; Writing by David Dolan; Editing by Edwina Gibbs)