Matsushita Electric Industrial Co. (Panasonic) is in talks to sell a big stake in its loss-making Victor of Japan (JVC) subsidiary to Kenwood, the Nihon Keizai Shimbun reported in its Saturday morning edition.
Panasonic wants to cut its stake in JVC to less than 20 per cent by next June, and talks between JVC President Masahiko Terada and Kenwood President Haruo Kawahara took place earlier this month, the newspaper said, without naming its source. Additionally, US investment fund Cerberus Group has offered to buy JVC through a management buy-out and will present a proposal to JVC's board as early as Monday, said the report.
"We have not decided anything in regards to the sale of a stake in JVC," Akira Kadota, a spokesman for Panasonic, said on Saturday. He declined to say whether Panasonic was in talks with Kenwood or any other party regarding such a sale.
Kenwood could not be immediately reached for comment.
In its most recent financial year JVC sales were ¥807 billion, a drop of 18 per cent on the previous year, and the company recorded a net loss of ¥31 billion.