November 8, 2012 / 8:11 AM / in 5 years

UPDATE 1-Bosch sells stake in Japan's Denso for $1.4 bln

* Bosch says to use money to fund investments, acquisitions

* Denso says no change to technology and business tie-ups (Adds Denso comment, background)

FRANKFURT/TOKYO, Nov 8 (Reuters) - German auto parts supplier Bosch said it sold its 5 percent stake in Japanese peer Denso for roughly 1.1 billion euros ($1.4 billion) to fund investments and strategic acquisitions.

Bosch, the world’s biggest auto parts supplier, said on Thursday that the roughly 46 million shares it held in Denso, the second-biggest parts maker, since the mid-1950s were considered to be only a financial investment and that they were sold in recent days.

Denso spokesman Shuji Kojima said there will be no changes in existing technological and business tie-ups between the two auto parts makers.

“We will continue to seek further cooperation within our existing tie-up framework,” he said.

Bosch and Denso, while competitors, have license agreements under which they share certain powertrain-related technologies.

They also have a joint venture in the United States that manufactures fuel pump parts, and another one in Japan that produces car navigation systems.

Denso is owned 22.5 percent by Toyota Motor Corp. Bosch was Denso’s biggest shareholder after Toyota Motor and Toyota Industries Corp. ($1 = 0.7840 euros) (Reporting By Christiaan Hetzner in Frankfurt and Yoko Kubota in Tokyo; Editing by Muralikumar Anantharaman)

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