NEC takes majority stake in Packard Bell
- 09 July, 1997 14:20
NEC will up its stake in struggling Packard Bell NEC in the US in an effort to reverse the ebbing of its market share, sources familiar with the plan said.
News of the pending transaction was also reported in Japan's Nikkei business daily. NEC will reportedly raise its stake in the PC-making subsidiary by $US285 million to a total of $US1.038 billion. While that gives it a 51.9 per cent share, the shares are non-voting convertible preferred stock, an NEC spokeswoman said, and NEC's voting shares remain at only 19.84 per cent.
Further details on the investment, such as the terms of conversion for these shares, were not available, so it is unclear whether this transaction will allow NEC to take a controlling stake in Packard Bell NEC.