Matsushita opens bidding for JVC

Matsushita Electric will invite bids on March 9 for the sale of its subsidiary, Victor Company of Japan Ltd (JVC), according to reports.

The financial daily Nikkei reported on March 3 that companies expected to bid for JVC would include Texas Pacific Group and Cerberus Capital Management.

The sale of JVC has been long rumored. Fumio Ohtsubo, president of Matsushita, announced last January that the company's new mid-term plan was to spin off JVC, but declined at the time to elaborate.

Matsushita has shown a sharp recovery from the record loss of $3.7 billion in fiscal 2001, but its 52-percent ownership stake in JVC has dragged down revenues.

Last February, JVC revised downward it its fiscal-year financial forecast. Though the company had expected a 3 percent jump in sales and $17 million in profit at the beginning of the term, the revised forecast pushed down the sales to a 3-percent drop from the year before and zero profit.

Sources close to Matsushita said it has been approaching several suitors about the sale of JVC.

Kenwood Corp. was considered a possible buyer along with overseas investment funds.

- Yoshiko Hara
EE Times