IoT
Infrastructure // PC & Servers
News
11/26/2008
01:24 PM
50%
50%

Panasonic, Sanyo Far Apart On Acquisition Price

If combined, a Panasonic-Sanyo company would rival Japan's Hitachi, which has some $110 billion in annual sales.

Panasonic's effort to acquire Sanyo Electric broke off abruptly this week with the two sides far apart in the prices they were offering for a deal.

Sanyo shareholder Goldman Sachs walked out of negotiations, according to media reports from Tokyo.

The negotiations were followed by a wave of conflicting reports, but it was clear that Panasonic was offering far less than the Sanyo shareholders are willing to accept. Even so, an acquisition is expected to be accomplished at more than $8 billion and possibly much more, based on the reports that have swirled around the negotiations for months.

"We're no longer in talks with Panasonic on Sanyo," a Goldman Sachs spokeswoman told The Wall Street Journal. Goldman, along with Daiwa Securities SMBC and Sumitomo Mitsui Banking Co., reportedly controls about 70% of Sanyo.

If combined, a Panasonic-Sanyo company would rival Japan's current largest corporate behemoth, Hitachi, which has some $110 billion in annual sales. Particularly coveted by Panasonic for its advanced battery technology and its position in the vanguard of solar energy products, Sanyo would complement much of Panasonic's existing businesses.

While Sanyo has a long history of producing outstanding products, it began to suffer financially a few years ago and was forced to sell off some business units.

Earlier this year, Goldman pressured Sanyo's founding family to sell the company's interest in its mobile phone unit, and the deal was reported to have been carried out for a $375 million sales price to Kyocera. The acquisition catapulted Kyocera into the No. 4 mobile phone position in Japan.

Preliminary negotiations between Panasonic and Sanyo established that the strong Sanyo brand would live on in any acquisition.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Server Market Splitsville
Server Market Splitsville
Just because the server market's in the doldrums doesn't mean innovation has ceased. Far from it -- server technology is enjoying the biggest renaissance since the dawn of x86 systems. But the primary driver is now service providers, not enterprises.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of July 17, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.