Kenwood eyed to save JVC
Sunday, June 10, 2007
ELECTRONICS giant Matsushita is talking to fellow Japanese firm Kenwood to take over its ailing subsidiary JVC after talks broke down with a US investment fund, reports said yesterday.
JVC, which stands for the Victor Co of Japan, has been a drag on otherwise profitable Matsushita Electric Industrial Co, best known for its Panasonic brand.
Matsushita owns a majority stake in JVC, which was the pioneer of VHS video recorders a generation ago, but has recently struggled in an increasingly competitive electronics market.
The Nikkei business daily and Kyodo News, citing unnamed sources, said the presidents of Matsushita and Kenwood Corp, best known for its car stereos, met in the past week to discuss JVC.
Matsushita has been talking with US-based TPG over a straight-out purchase of JVC in what would be the first acquisition of a major Japanese electronics maker by a foreign investment fund.
But the reports said negotiations were in trouble, in part over the sale price, leading Matsushita to turn back to Kenwood with which it had earlier held talks.
In a potential deal, JVC would issue new shares, which Kenwood would acquire before merging management and letting Matsushita sell its stake to the new holding company, the reports said.
Kenwood's largest shareholder is Japanese asset management firm Sparx, which would likely pump cash into JVC under a tie-up, the reports said.
No company officials were immediately available for comment on the reports Saturday. AFP
JVC, which stands for the Victor Co of Japan, has been a drag on otherwise profitable Matsushita Electric Industrial Co, best known for its Panasonic brand.
Matsushita owns a majority stake in JVC, which was the pioneer of VHS video recorders a generation ago, but has recently struggled in an increasingly competitive electronics market.
The Nikkei business daily and Kyodo News, citing unnamed sources, said the presidents of Matsushita and Kenwood Corp, best known for its car stereos, met in the past week to discuss JVC.
Matsushita has been talking with US-based TPG over a straight-out purchase of JVC in what would be the first acquisition of a major Japanese electronics maker by a foreign investment fund.
But the reports said negotiations were in trouble, in part over the sale price, leading Matsushita to turn back to Kenwood with which it had earlier held talks.
In a potential deal, JVC would issue new shares, which Kenwood would acquire before merging management and letting Matsushita sell its stake to the new holding company, the reports said.
Kenwood's largest shareholder is Japanese asset management firm Sparx, which would likely pump cash into JVC under a tie-up, the reports said.
No company officials were immediately available for comment on the reports Saturday. AFP
Business Besides Oil
