Panasonic set to buy rival Sanyo | business | Hindustan Times
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Panasonic set to buy rival Sanyo

Panasonic Corp said it would spend up to $9 billion to take control of smaller rival Sanyo Electric Co Ltd, creating Japan’s second-largest electronics maker behind Hitachi Ltd. Panasonic.

business Updated: Dec 19, 2008 23:48 IST

Panasonic Corp said it would spend up to $9 billion to take control of smaller rival Sanyo Electric Co Ltd, creating Japan’s second-largest electronics maker behind Hitachi Ltd. Panasonic, the world’s No. 1 plasma TV maker, said it would offer 131 yen (Rs 72) per Sanyo common share, a 4 per cent discount to Friday’s closing price, with the goal of acquiring a majority stake in Sanyo.

Goldman Sachs said it would tender its Sanyo stake to Panasonic, while Sumitomo Mitsui Banking and Daiwa Securities SMBC are positively considering selling their stakes into the tender. The three firms hold nearly 430 million of Sanyo’s preferred shares, each of which can be exchanged for 10 common shares when a restriction is lifted in March. If converted, Goldman and Daiwa Securities SMBC would each hold a 29 per cent stake in Sanyo, while Sumitomo Mitsui Banking would hold about 12 per cent.

The decision by Goldman, which had rejected Panasonic’s earlier lower offers, came after the Wall Street firm reported its first quarterly loss since going public. Reuters