Renesas Rises on Report of Possible Sale of Subordinated Bonds

Renesas Electronics Corp. (6723) rose by a
record in Tokyo trading after the Nikkei newspaper reported that
the company may sell subordinated bonds to NEC Corp. (6701) and two
other major shareholders.

The world’s biggest maker of automotive microcontrollers
jumped as much as 28 percent, the biggest gain since 2003, when
the company was listed as NEC Electronics Corp., to 287 yen, and
traded at 277 yen as of 10:40 a.m. on the Tokyo Stock Exchange.

Renesas President Yasushi Akao met heads of NEC, Hitachi
Ltd. (6501)
and Mitsubishi Electric Corp. (6503) separately on June 1 to ask
for aid and 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).

The company presented a restructuring proposal last month
to its workers union and lenders Mitsubishi UFJ Financial Group
Inc. and Mizuho Financial Group Inc. (8411), a person briefed on the
matter said May 25.

The chipmaker, 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. The company’s customers
include Apple Inc. (AAPL), Sony Corp. (6758) 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


Enlarge image

Renesas Rises on Report of Possible Sale of Subordinated Bonds

Tomohiro Ohsumi/Bloomberg

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.

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

Please enable JavaScript to view the comments powered by Disqus.

Open bundled references in tabs: