Panasonic, Sanyo Far Apart On Acquisition Price - InformationWeek
IoT
IoT
Infrastructure // PC & Servers
News
11/26/2008
01:24 PM
50%
50%
RELATED EVENTS
[Best Practices] Managing Multiple Clouds
Jul 26, 2017
Putting all your eggs in one cloud basket is risky, because clouds are not immune to denials of se ...Read More>>

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
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
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.
Flash Poll