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Renesas shares surge 35% on KKR investment reports | Renesas shares surge 35% on KKR investment reports |
(about 1 hour later) | |
Shares of chip maker Renesas have surged on reports that the US-based private equity fund KKR & Co. plans to invest 100bn yen ($1.3bn; £804m) in the firm. | Shares of chip maker Renesas have surged on reports that the US-based private equity fund KKR & Co. plans to invest 100bn yen ($1.3bn; £804m) in the firm. |
Renesas shares jumped as much as 35% to 308 yen in Tokyo. | Renesas shares jumped as much as 35% to 308 yen in Tokyo. |
The firm has been struggling amid increased competition from rivals, falling chip prices and weaker global demand. | The firm has been struggling amid increased competition from rivals, falling chip prices and weaker global demand. |
It reported a net loss of 62.6bn yen for the year to the end of March 2012. | It reported a net loss of 62.6bn yen for the year to the end of March 2012. |
The offer under discussion would give KKR a stake of more than 50% in Renesas, according to Reuters news agency, which cited sources familiar with the matter. | The offer under discussion would give KKR a stake of more than 50% in Renesas, according to Reuters news agency, which cited sources familiar with the matter. |
Analysts said investors were hoping that the fresh injection of funds would help the Japanese firm turn around its fortunes. | |
Earlier this year, Renesas Electronics, the world's fifth biggest chipmaker, announced a restructuring plan in an effort to streamline its operations. | |
Under the plan, the firm would close or sell half of its 19 plants and cut 5,000 jobs, or 12% of its workforce. | |
The company also said that it will focus more on its microcontroller chip business. | |
Renesas is the world's biggest manufacturer of these chips, which are used in cars, and it has a global market share of more than 25% in the sector. |