There goes the neighborhood...
--Lou, K2LKK



At 02:26 PM 6/26/2007 -0400, you wrote:
>TOKYO, June 23 (Reuters) - Struggling consumer electronics maker JVC
>will likely merge with audio equipment maker Kenwood Corp. under a
>joint holding company as early as 2008, sources close to the matter
>said on Saturday.
>
>Matsushita, the world's largest consumer electronics maker holding
>52.4 percent stake in JVC, is expected to sell its shares in the
>Yokohama-based firm to the holding company, taking the lossing-making
>JVC off its consolidated accounts, they said.
>
>Panasonic maker Matsushita Electric Industrial Co. has been trying to
>sell its JVC stake, worth about 52.6 billion yen ($425 million),
>because its persistent losses have been weighing on its group-based
>earnings performance.
>
>Under the preliminary integration plan, Kenwood will first buy 20
>billion yen worth of new JVC shares through a third-party allocation,
>taking a stake of about 13 percent.
>
>Then, JVC and Kenwood, a maker of audio equipment and car
>electronics, will set up a holding company as early as 2008, under
>which two firms will merge their operations.
>
>They aim to reach the final agreement by the end of July, the sources
>said.
>
>The Nikkei business daily said on Saturday Sparx Asset Management, an
>investment firm that holds Kenwood shares, is also expected to buy
>part of the JVC shares Matsushita owns, after the third-party
>allotment but before the establishment of the holding company.
>
>Spokesmen at Matsushita, JVC and Kenwood said nothing has been
>decided.
>
>Matsushita chose U.S. private equity firm Texas Pacific Group as its
>preferred bidder for its JVC stake back in March.
>
>But the talks fell through this month after banks had resisted
>funding the acquisition because they were unconvinced that TPG could
>turn around a company heading for its fourth straight annual loss.
>
>Matsushita also turned sour on the deal with TPG because TPG lowered
>its offer price after JVC's earnings announcement in April when its
>loss turned out to be larger than previously forecast, sources have
>said.
>
>Although JVC enjoys brisk demand for hard disk drive-equipped
>camcorders, its rear-projection television sales have been hit by
>sharp falls in plasma TV prices.
>
>It is also struggling to compete with industry titans such as Sony
>Corp. and Samsung Electronics Co. Ltd. in the liquid crystal display (LCD) TV
>market. ($1=123.86 Yen)
>
>Don't worry about what people think; they don't do it very often.
>
>Steve, K8SP
>
>
>
>--
>No virus found in this incoming message.
>Checked by AVG Free Edition.
>Version: 7.5.476 / Virus Database: 269.9.9/872 - Release Date: 6/26/2007 
>6:43 PM

Louis Kim Kline
A.R.S. K2LKK
Home e-mail:  [log in to unmask]
Work e-mail:  [log in to unmask]
Work Telephone:  (585) 697-5753