Panasonic makes offer for Sanyo

TOKYO, Dec. 19 (UPI) -- Japan's Panasonic Corp. Friday offered 131 yen a share, or about $6.3 billion, for the 70.5 percent stake held by three major holders in Sanyo Electric Co.

The three Sanyo stakeholders are Goldman Sachs Group Inc., Daiwa Securities SMBC Co. and Sumitomo Mitsui Banking Corp.

The 560 billion yen offer, which came after prolonged negotiations, will help create Japan's largest electrical machinery maker, Kyodo news service reported.

Sanyo is the world's largest supplier of lithium ion batteries, which will allow Panasonic to grow its rechargeable battery operations and strengthen its foothold in the solar-cell business.

"Drastic action is now required for further strengthening initiatives to achieve potential revenue and profit growth in the global economic recession stemming from the financial crisis," the companies said in a statement.

The three holders were expected to convert their preferred Sanyo shares into common stock before selling them to Panasonic, the report said.

Panasonic planned to keep Sanyo's stock listing after the merger and said it may invest around 100 billion yen or $1.12 billion to achieve synergy effects from the merger.

Sanyo shares closed at 136 yen Friday on the Tokyo Stock Exchange on Friday, down 3.5 percent from Thursday, Kyodo said. Panasonic shares closed at 1,051 yen, up nearly 3 percent.