Tuesday, May 22, 2007

Cerberus, 3 others to bid for Sanyo Electric's semiconductor unit - report

AFX News Limited

05.21.07, 6:47 PM ET TOKYO (XFN-ASIA) - US investment fund Cerberus Capital Management LP, and three other groups, are bidding to purchase a semiconductor-manufacturing unit of Sanyo Electric Co Ltd, the Nikkei reported, without citing sources.

The Osaka-based firm plans to pick a prospective buyer for Sanyo Semiconductor Co by August and conclude negotiations with it the following month, the business daily said. Sanyo aims to sell the chip unit for 150-200 bln yen, the Nikkei said.

The four bidders are Cerberus; an alliance of CVC Capital Partners, Blackstone Group LP and Vestar Capital Partners; an alliance of domestic fund MKS Partners Ltd and the Longreach Group, which has bases in Japan and Hong Kong; and chipmaker Rohm Co.

Sanyo intends to sell the subsidiary to a bidder that promises to offer job security for the unit's roughly 2,000 employees,

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