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Japan's NEC rejects request from Renesas for cash - media
TOKYO, June 9 |
TOKYO, June 9 (Reuters) - Japan's NEC Corp has rejected a request for a capital injection from struggling chipmaker Renesas Electronics Corp, a senior NEC executive was reported as saying on Saturday.
NEC's vice president Takashi Niino said his company rejected the request partly because all electronics makers were facing a difficult operating environment and NEC's shareholders would not agree to a cash infusion, Niino said in an interview with the Asahi newspaper.
The rejection could pose a serious blow to Renesas' efforts to revive its business.
NEC, which is a major shareholder in Renesas, cannot take on any workers who will be laid off from the chipmaker, Niino said. NEC also has not made any decision on Renesas' request for loan guarantees from its main shareholders, according to Niino.
Renesas, a product of successive mergers of the chip divisions of Mitsubishi Electric Corp, Hitachi Ltd and NEC, has been trying to raise more than 100 billion yen ($1.26 billion) in fresh capital and plans to cut at least 12,000 jobs, sources have said.
The company, which is the world's leading supplier of microcontroller chips used in cars, is facing high costs and tough overseas competitors. It logged a massive net loss this year after it was forced to shut eight of its factories because of natural disasters last year in Japan and Thailand. (Reporting by Stanley White; Editing by Robert Birsel)
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