Panasonic may offer to buy a majority stake in Sanyo for up to 500 billion yen ($5.2 billion), but at an offer below Sanyo's current share price.
According to an unsourced article in Japanese daily Yomiuri, the company is planning to offer 120 yen per share for Sanyo stock. Yet significant stakeholder Goldman Sachs intends to value its Sanyo stock at about $2.57 per share, suggesting intense bargaining ahead.
Panasonic has downplayed the veracity of the story, yet did not deny it. A spokesperson for the company told Dow Jones Newswires that, 'While there were media reports regarding a tender offer price for Sanyo shares, they are not something that has been released by Panasonic.'
If Panasonic cannot make a deal with Goldman Sachs, it can still buy out the shares of the other two significant shareholders - Daiwa Securities and Sumitomo Mitsui Banking. But that would only take Panasonic's ownership of Sanyo to a maximum of 40%.
News of a potential low-ball offer impacted the value of Sanyo shares, which dropped 2.5% to close at $1.60.