JVC Kenwood Holdings Inc. fell the most in more than six months in Tokyo trading after the Yomiuri newspaper reported Panasonic Corp. will reduce its stake in the audio-equipment maker.
The shares tumbled 12.6 percent to 318 yen at the 3 p.m. close, the biggest decline since May 17. The stock has slid 26 percent this year, compared with the 2.5 percent drop in Japan’s benchmark Nikkei 225 Stock Average. Panasonic, the world’s largest maker of plasma televisions, gained 0.3 percent to 1,194 yen.
JVC Kenwood, based in Yokohama, Kanagawa prefecture, plans to raise about 10 billion yen ($119 million) by selling new shares as early as in January, Yomiuri reported, without saying where it obtained the information.
“Nothing has been decided,” Takaaki Nose, a spokesman for JVC Kenwood, said in a telephone interview today. The company may consider ways of raising funds to boost its financial strength, he said. Akira Kadota, a Tokyo-based spokesman for Panasonic wasn’t immediately available for comment.
Osaka-based Panasonic, which owns 28 percent of JVC, won’t buy shares and plans to cut its stake to less than 20 percent, the report said.
To contact the reporter on this story: Mariko Yasu in Tokyo at email@example.com.
To contact the editor responsible for this story: Young-Sam Cho at firstname.lastname@example.org.