Friday, July 14, 2000
Delphi Automotive To Take Major Stake In Nissan Parts Maker

TOKYO (Nikkei)--Leading autoparts maker Delphi Automotive Systems Corp. is wrapping up a deal to acquire a 33.4% stake in Calsonic Kansei Corp., which is Nissan Motor Co.'s  top parts supplier, The Nihon Keizai Shimbun learned Thursday.

Such a stake would make Delphi the top shareholder in Calsonic Kansei. Delphi would obtain the right to veto any major changes brought up at Calsonic Kansei's shareholders meetings, giving it effective control of the firm.

Delphi is negotiating to buy the stake from the Nissan group, which now holds about 35% of Calsonic Kansei's stock. The companies have exchanged memorandums on the matter, and Delphi Chairman J.T. Battenberg III has held top-level talks with Nissan President Carlos Ghosn.

Delphi plans to initially obtain a 32% stake in Calsonic Kansei from Nissan and will then accumulate enough additional shares to give it a 33.4% stake.

Delphi will soon wrap up its evaluation of Calsonic Kansei's assets and then offer an acquisition price, which is expected to be around 30 billion yen, to Nissan. Delphi aims to achieve a final agreement by the end of August.

The deal will help Delphi make inroads in Japan and other parts of Asia in the field of electronic systems, which analysts say will be a core technology in advanced automobiles.

(The Nihon Keizai Shimbun Friday morning edition)


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