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Renesas Rises on Possible Subordinated Bonds Sale Report

Renesas Rises on Report of Possible Sale of Subordinated Bonds
Renesas, based in Kawasaki, Japan, makes semiconductors that are used in products from automobiles to consumer electronics for tasks including triggering air bags in cars and controlling DVD players. Photographer: Tomohiro Ohsumi/Bloomberg

June 4 (Bloomberg) -- Renesas Electronics Corp. gained, after dropping to a record low in Tokyo trading last week, as the Nikkei newspaper reported the chipmaker may sell subordinated bonds to NEC Corp. and two other shareholders.

The world’s biggest maker of automotive microcontrollers jumped 13 percent to 255 yen on the Tokyo Stock Exchange. The rebound pared the decline since April 1 to 56 percent and came after the shares dropped on May 29 to 204 yen, the lowest close on record for the Kawasaki, Japan-based company.

Renesas President Yasushi Akao met heads of NEC, Hitachi Ltd. and Mitsubishi Electric Corp. separately on June 1 to ask for aid and to explain his company’s restructuring plans, the Nikkei said June 2, without saying where it got the information. Renesas, which has lost money every year since 2010 when it was formed by merging with NEC Electronics, is said to be planning to cut 10,000 jobs and raise 100 billion yen ($1.3 billion).

Akao visited the three companies, spokesman Yoichi Kobayashi said by phone today. He declined to comment on details of the meeting.

The company presented a restructuring proposal last month to its workers union and lenders Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc., a person briefed on the matter said May 25.

The chipmaker makes semiconductors that are used in products from automobiles to consumer electronics for tasks including triggering air bags in cars and controlling DVD players. The company’s customers include Apple Inc., Sony Corp. and Nintendo Co., according to data compiled by Bloomberg.

To contact the reporter on this story: Naoko Fujimura in Tokyo at nfujimura@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

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