[EIDXA] Kenwood to merge with JVC

[David J. Schmocker]

Kenwood merges with Japan Victor Corporation.

Kenwood has agreed to merge in with JVC in 2008 under a holding company. 
JVC is
owned by Matsushita Electric Industrial Company. Japan's Nikkei business
newspaper reports that the final details should be worked out by the end 
of the
month, and that under the plan, Kenwood will buy 20 billion Yen 
($161,469,466)
in JVC shares as early as this Summer, raising its stake to 13 percent.
Matsushita will also sell part of its 52.7 percent of JVC to Kenwood's top
shareholder, the Sparx Group.
When JVC and Kenwood integrate operations under the holding company in 2008,
Matsushita will sell the rest of its JVC shares to the holding company to
complete the transaction. The holding company's stock will be listed 
instead of
Kenwood and JVC, according to Nikkei. Combined, Kenwood and JVC's sales 
are $7.3
billions annually for their fiscal year that ended March 31.