Wednesday, November 26, 2008

Goldman ends talks on Sanyo stake sale

Goldman ends talks on Sanyo stake sale

U.S. bank says Panasonic offer to buy interest in electronics rival is unacceptable.

TOKYO (AP) -- Goldman Sachs said Wednesday it has ended negotiations to sell its Sanyo Electric Co. holdings to Panasonic Corp., potentially sinking Panasonic's attempt to buy its smaller electronics rival.

A spokeswoman for the U.S. bank says it could not accept the price or deal structure offered by Japan's Panasonic.

Panasonic and Sanyo earlier this month began talks on a buyout deal that could create one of the world's largest electronics companies as soon as year-end.

But Goldman (GS, Fortune 500)'s objections could delay or even sink the buyout.

Sanyo's biggest stakeholders are Goldman, Sumitomo Mitsui Banking Corp. and Daiwa Securities SMBC, which invested ¥300 billion in 2006 to rescue Sanyo. They have a combined stake of about 70%.

CNN

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