Ford to sell Mazda shares to insurers, others: media

TOKYO (Reuters) - Ford Motor Co (F.N) is finalising plans to sell shares in Mazda Motor Co (7261.T) to about 20 Japanese firms, including insurers, and will likely outline the deal by next month, local media reported on Friday.

Ford is considering selling some of its 33.4 percent stake in Mazda as it struggles with weakening sales and the global credit crunch, according to a person familiar with the matter.

Media have said that Ford is looking to sell 20 percent and that Mazda will also buy back some of the shares.

Ford has approached five nonlife insurers: Tokio Marine Holdings (8766.T), Mitsui Sumitomo Insurance Group Holdings (8725.T), Sompo Japan Insurance (8755.T), Nipponkoa Insurance (8754.T), Aioi Insurance (8761.T), the Nikkei business daily said.

Besides the insurers, companies including trading houses Sumitomo Corp (8053.T) and Itochu Corp (8001.T), parts maker Denso Corp (6902.T), and steel makers are likely buyers of Mazda shares, the Mainichi daily reported.

Each company is to buy about 1 percent in Mazda, the equivalent of about $40 million based on Mazda's market value on Thursday, and Ford is expected to raise some 100 billion yen ($1 billion), media said.

Ford does not want to sell Mazda shares to rival automakers because the two companies intend to continue their business partnership that include operations of jointly owned factories in Thailand, China, and the United States, the Mainichi said.

Both Ford and Mazda have declined to comment on reports.

Mazda shares were up 6.5 percent at 297 yen as of 8:21 p.m. EDT. The Nikkei average .N225 was up 3.2 percent.

(Reporting by Sachi Izumi; Editing by Edwina Gibbs)