December 02, 2008

Matsushita, Sumitomo and Nippon enter cross shareholdings

Kyodo News reported that, according to financial statements and sources, Matsushita Electric Industrial Co has entered a cross shareholding arrangement with Sumitomo Metal Industries Ltd and Nippon Steel Corp to secure stable stockholders to deter hostile takeover bids in the electronics and steel industries.

According to the nonferrous metal company's financial statement for business 2006 to last March Sumitomo Metal purchased 4.3 million outstanding shares of Matsushita or a stake of about 0.2%. However Sumitomo Metal did not own any Matsushita shares the previous year.

The report cites sources as saying that Sumitomo Metal is believed to have acquired the stake for JPY 10 billion and Matsushita has purchased that equivalent in Sumitomo Metal shares. Meanwhile Nippon Steel bought 8.08 million Matsushita shares or a 0.3%.