Hitachi to Take Full Control of 5 Group Firms

Tokyo, July 27 (Jiji Press)--Hitachi Ltd. <6501> is considering
taking full control of five listed subsidiaries, including battery maker
Hitachi Maxell Ltd. <6810>, as part of efforts to regain profitability,
informed sources said Monday.
The major Japanese electronics maker plans to launch tender offers
as early as August for Hitachi Maxell, Hitachi Plant Technologies Ltd.
<1970>, Hitachi Information Systems Ltd. <9741>, Hitachi Software
Engineering Co. <9694> and Hitachi Systems & Services Ltd. <3735>.
It plans to spend at least 200 billion yen to raise its equity
stakes in the five units to 100 pct from over 50 pct at present. The units
are due to be delisted from the Tokyo Stock Exchange after the acquisitions,
the sources said.
The move comes as Hitachi's earnings deteriorated rapidly in the
face of the global economic downturn since last autumn.
In fiscal 2008 that ended in March this year, Hitachi incurred a
group net loss of 787 billion yen, the worst performance among Japanese
manufacturers.
Through the planned acquisitions, the company hopes to focus more
on social infrastructure and other growth business areas to improve its
earnings.
Hitachi particularly intends to fully capitalize on each unit's
strength, such as Hitachi Maxell's lucrative lithium-ion batteries, Hitachi
Plant's nuclear power plant construction and Hitachi Information's
information technology, the sources said.