Hitachi to take control of key businesses

Japan's Hitachi Ltd., hit hard by the global recession, plans to spend up
to 3.2 billion dollars to take full control of five domestic units with
strong growth prospects, a newspaper said Monday. The sprawling
conglomerate, which last year suffered the largest loss ever for a Japanese
manufacturer, is looking to pay to 300 billion yen (3.2 billion dollars)
for shares in the businesses, the Nikkei business daily said. The tender
offers will begin in late August and are expected to be announced this week,
the newspaper said without naming its sources. The group currently holds
stakes of about 50 to 70 per cent in the five subsidiaries - Hitachi
Maxell, Hitachi Plant Technologies, Hitachi Information Systems, Hitachi
Software Engineering, and Hitachi Systems & Services. The Nikkei said of
its 16 listed subsidiaries, Hitachi chose those firms for their strong
growth prospects. Hitachi Maxell makes lithium-ion batteries, used in
personal computers and many other electric devices, while Hitachi Plant
Technologies constructs nuclear power plants. Hitachi declined to comment on
the report. The Hitachi group, which makes everything from refrigerators
to nuclear power systems, logged a net loss of 787.3 billion yen for the
last business year to March.