Matsushita negotiating JVC stake sale with Kenwood, dumps TPG offer

Matsushita, which has been looking for a buyer for its struggling JVC, in which it has a 52.4 per cent stake, has been unable to close a deal for want of suitable buyer.

Matsushita, maker of the Panasonic brand, ended JVC stake sale talks with US equity fund TPG Inc and turned back to Kenwood, with which it had held talks late last year, reports in the Nikkei said.

A deal would involve dilution of JVC shares whereby JVC would issue Y20 billion in new shares to Kenwood, the report said.

"We are considering various options in regard to our stake in JVC," but nothing has been decided, a Matsushita spokesman said. Kenwood said it hasn''t made any decision on matters related to a JVC sale.

If the negotiations lead to a deal, Kenwood would get access to the well-known JVC brand, and the two companies could cooperate in car electronics and home stereos.

JVC''s mainline products like flat-screen TVs and video cameras are, however, outside of Kenwood''s main business.