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Goldman ends talks on Sanyo
Nick Goodway26.11.08
Goldman Sachs has broken off talks about selling its stake in Japanese consumer electronics group Sanyo to Panasonic at a price below the current stock market level.
Panasonic is reported to have offered 120 yen (82p) a share for Goldmans stake which is less than the current 153 yen market price and less than half the 250 yen a share which Goldman is looking for.
A deal would give Panasonic a dominant position in the market for rechargable batteries and solar-powered equipment.
Goldman and two Japanese banks, Daiwa Securities and Sumitomo Mitsui, bailed out Sanyo in 2006 when they bought a huge parcel of convertible preference shares which would give them a 760% stake in the business when the shares convert next March.
Goldman today said it was up to Panasonic to come back with a better offer.
A spokesman said: "There is no use in carrying out negotiations based on the current offer."
