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Cerberus and Texas Pacific want control of JVC, reports say

US investment funds Texas Pacific Group and Cerberus Capital Management are believed to have made bids for control of JVC, a money-losing subsidiary of Matsushita Electric Industrial Co, news reports said.

Matsushita, which makes Panasonic products, carried out bidding to sell its 52.4 percent stake in Victor Company of Japan Ltd, widely known as JVC, on Friday with the two funds apparently taking part, Kyodo News agency reported, citing "sources familiar with the matter."

Matsushita will examine the buyout proposals and aim at completing negotiations by the end of this month, it said.

Japanese business newspaper Nihon Keizai Shimbun carried a similar report yesterday on its Web site, without stating the source of its information.

Matsushita spokesman Akira Kadota refused to comment on the reports. JVC officials were not available yesterday.

Developer of VHS

JVC, which had developed VHS-format videocassette recorders, was once a strong player in consumer electronics, but its earnings have declined because of mounting competition in the audiovisual market from lower-cost producers. It is the only Matsushita subsidiary which is in the red.

JVC, founded in 1927, originally was a subsidiary of the US record company Victor, but cut ties during World War II. It continues to use Victor's symbol of the dog Nipper listening to his master's voice over a gramophone in Japan, but is not allowed to do so overseas.

Matsushita has reportedly not wanted to sell JVC to a rival Asian electronics company.
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