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Tokyo (AFP) July 29, 2010 Panasonic said Thursday it will spend up to 9.36 billion dollars to buy out the remaining shares of subsidiaries Sanyo and Panasonic Electric Works, converting them into wholly owned units. Electronics maker Sanyo surged 26 percent on the Tokyo stock exchange Thursday following reports of Panasonic's 818.4 billion yen (9.36 billion dollar) plan which was later confirmed by the company. In December Panasonic secured a controlling stake in its smaller rival in a deal that revamped Japan's troubled electronics industry. By doing so, Panasonic gained access to Sanyo's coveted environmental technologies such as rechargeable batteries -- seen as a promising sector given growing concerns about global warming. The company now aims to shift its focus from home electronics -- which faces increasing competition and shrinking margins -- to the fast-growing and lucrative renewable energy and energy conservation business. Panasonic plans to complete the transaction by April 2011, it said. Sanyo surged by 26.27 percent to 149 yen in Thursday trade. Panasonic Corp fell 7.71 percent to 90 yen on worries that it would have to raise capital for the move. Analysts noted that while the move may make it easier for Panasonic to make decisions quickly, investors could initially react to the decision's negative aspects, as the plan to issue new shares triggers dilution concerns. "If Panasonic were to challenge Samsung in any way, its investment decisions would have to be very swift and effective," Mizuho Investors Securities analyst Nobuo Kurahashi told Dow Jones Newswires. Panasonic Corp. said it swung to net profit in the April-June quarter on year as brisk sales and cost-cutting efforts offset the negative impact of a strong yen and a rise in prices of raw materials. The company posted a net profit of 43.7 billion yen for the three months, reversing a net loss of 53.0 billion yen a year earlier. Sales jumped 35.5 percent to 2.16 trillion yen and it upgraded its full year forecast.
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China denies forcing foreign firms to transfer technologyBeijing (AFP) July 29, 2010 Beijing on Thursday denied charges by a US business group that its technology transfer rules for foreign firms constitute "theft" on a massive scale, and defended its policies as meeting global rules. "Countries around the world have taken a lot of measures to encourage technology innovation," a commerce ministry official, who declined to be named, told AFP. "The Chinese policies are in ... read more |
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