Sanyo Transfers Board Control to Goldman Sachs & Daiwa Securities

OSAKA, Japan (Jan 26) - Sanyo Electric Co., the world's biggest rechargeable battery maker, will cede management control to investors including Goldman Sachs Group Inc. in return for a 300 billion yen (US$2.6 billion) bailout to help compensate record losses. Goldman and Daiwa Securities SMBC Co. will each appoint two directors, The banks will buy preferred stock, each convertible into 10 common shares worth 70 yen apiece, a fifth of today's 348 yen close. Sanyo, founded by Toshio Iue in 1947, needs cash to pay for a three-year restructuring plan that includes cutting 15 % of its workforce, closing factories and investing in solar panels and batteries. His son, 73-year-old Satoshi, helmed the company for 13 years as competition with Chinese and Taiwanese manufacturers eroded earnings in products such as digital cameras and washing machines. Shares of Sanyo, which is forecasting a second record annual loss, rose 8.1 % today on the Tokyo Stock Exchange. The announcements were made after an extraordinary board meeting held today in Osaka. The company, which means ``three oceans,'' started as a maker of bicycle lights and is now focused on clean energy products such as rechargeable batteries.