Thursday November 5, 1:18 AM
Panasonic to launch delayed Sanyo bid this week
Japan's Panasonic Corp. said Wednesday that it would launch a delayed takeover bid worth at least 4.5 billion dollars for its struggling smaller rival Sanyo Electric Co. this week.
Panasonic said it aimed to acquire a minimum stake of 50.04 percent in Sanyo through a tender offer worth 131 yen per share, giving the deal a value of at least 402.3 billion yen.
"The competitive business environment surrounding the two companies is expected to intensify further," Panasonic said in a statement. "It is becoming increasingly difficult to sustain growth alone."
The Japanese electronics giant first announced in December 2008 it had struck a deal with a clutch of heavyweight investors to buy a controlling stake in Sanyo and form an industry heavyweight amid the global economic downturn.
The takeover offer was delayed by regulatory issues but will now be launched on Thursday, running until December 7.
Sanyo has agreed to sell some of its auto battery operations to address the concerns of competition authorities in Japan, China, Europe and the United States.
Recently the firm has tried to focus on environmental technologies -- areas coveted by Panasonic, which is cutting 15,000 jobs and closing dozens of plants as it struggles to recover from its first annual loss for six years.
Sanyo, which started off making bicycle lamps after World War II, has also cut thousands of jobs as it attempts to return to profit.
It was forced to raise cash by issuing several billion dollars' worth of stock in 2006 to shore up its capital base, effectively handing over control to Goldman Sachs and other financial firms.
Sanyo shares have risen sharply since the deal with the key investors was first announced almost a year ago, ending Wednesday at 216 yen, down 5.3 percent from the previous close.
Goldman said last month it had signed an agreement to sell slightly more than half of its shares in Sanyo, retaining a stake of 13.3 percent.
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