Sanyo negotiates selling its mobile phone unit to Kyocera

Sanyo negotiates selling its mobile phone unit to Kyocera

Being in financial crisis, Sanyo ElectricCo. is about to sell its mobile phone unit to its competitor Kyocera Corp.Declaring the yesterday negotiations, the both companies did not state anydetails for the deal, whose bid Nikkei estimated at 70 billion yen (US$597million; €422 million).Despite making mainly electronic components, Sanyo isclosely related to mobile-phone business through its close ties to KDDI Corp.,whose phone manufacturer for the Japanese market and largest shareholder isKyocera Corp. The coming deal proves that the huge last year bailout in Sanyo(300 billion yen; US$2.56 billion; €1.81 billion) was not in vain. The Ousterof Sanyo’s former president due to his decline to make any major changes wasthe milestone that marked the beginning of a new period in its history. Forthat time it commenced series of negotiations for selling or auctioning severalof its losses inflicting business branches, the yesterday negotiations wereonly part of. As a result the company expects first group net profit for thelast four years. Further sales and cuts are expected to be announced inNovember 2007.


source: theWSJ

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