Japan's Matsushita, Sanyo deny tie: report
Japanese consumer electronics giant Matsushita Electric Industrial Co denied a report that it may take an equity stake in Sanyo Electric Co to help rehabilitate its smaller rival.
By Agencies |
TOKYO: Japanese consumer electronics giant Matsushita Electric Industrial Co denied a report on Monday that it may take an equity stake in Sanyo Electric Co to help rehabilitate its smaller rival.
Citing an anonymous source, the Yomiuri Shimbun reported Monday that three financial firms that control Sanyo have been seeking to sell shares to a major company in the same industry.
Matsushita could use Sanyo's technology in rechargeable batteries, the daily said, adding that the two firms may eventually merge their operations.
But Matsushita said in a statement that it was "not true that we are considering the reported idea." Sanyo also flatly denied the report.
Sanyo has been under pressure from heavyweight institutional investors to restructure its business and return to profit.
The company issued 300 billion yen (2.9 billion dollars) worth of shares to the Goldman Sachs group of the United States, Daiwa Securities SMBC and Sumitomo Mitsui Bank in March 2006 to shore up its capital base.
The three firms now have nearly 70 percent of voting rights, according to a Sanyo spokeswoman.
The three major shareholders reportedly believe it would take too long for Sanyo to recover from its financial troubles on its own.
After reporting three straight annual net losses, Sanyo has been divesting its non-core operations and increasing its focus on rechargeable batteries, which have been a bright spot in an otherwise lacklustre performance.
The Osaka-based company, which started out making bicycle lamps after World War II, has slashed thousands of jobs as it seeks to streamline its operations.
Shares in Sanyo Electric Co. soared 4.2 percent to 248 by the lunch break following the report. Matsushita was up 1.18 percent at 2,145 yen, outperforming the benchmark Nikkei-225 index which added 0.75 percent.
The Tokyo Stock Exchange had earlier briefly suspended trading in the two companies pending their response to the report.
Sanyo is due to report next month its earning results for the financial year which ended in March. It has previously forecast an annual net profit of 20 billion yen after a loss of 45.36 billion yen in the previous year.
Citing an anonymous source, the Yomiuri Shimbun reported Monday that three financial firms that control Sanyo have been seeking to sell shares to a major company in the same industry.
Matsushita could use Sanyo's technology in rechargeable batteries, the daily said, adding that the two firms may eventually merge their operations.
But Matsushita said in a statement that it was "not true that we are considering the reported idea." Sanyo also flatly denied the report.
Sanyo has been under pressure from heavyweight institutional investors to restructure its business and return to profit.
The company issued 300 billion yen (2.9 billion dollars) worth of shares to the Goldman Sachs group of the United States, Daiwa Securities SMBC and Sumitomo Mitsui Bank in March 2006 to shore up its capital base.
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The three firms now have nearly 70 percent of voting rights, according to a Sanyo spokeswoman.
The three major shareholders reportedly believe it would take too long for Sanyo to recover from its financial troubles on its own.
After reporting three straight annual net losses, Sanyo has been divesting its non-core operations and increasing its focus on rechargeable batteries, which have been a bright spot in an otherwise lacklustre performance.
The Osaka-based company, which started out making bicycle lamps after World War II, has slashed thousands of jobs as it seeks to streamline its operations.
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Shares in Sanyo Electric Co. soared 4.2 percent to 248 by the lunch break following the report. Matsushita was up 1.18 percent at 2,145 yen, outperforming the benchmark Nikkei-225 index which added 0.75 percent.
The Tokyo Stock Exchange had earlier briefly suspended trading in the two companies pending their response to the report.
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Sanyo is due to report next month its earning results for the financial year which ended in March. It has previously forecast an annual net profit of 20 billion yen after a loss of 45.36 billion yen in the previous year.
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