Speculation about Panasonic's interest in buying a majority stake in Sanyo began last weekend, when the Japanese media reported that Panasonic and Sanyo had reached a preliminary agreement on the sale. Panasonic plans to make a formal offer to Sanyo soon to Goldman Sachs, Sumitomo Mitsui and Daiwa Securities SMBC, which collectively own about 70 percent of Sanyo.

Solar cell and lithium-ion battery operations make Sanyo an attractive acquisition target. The company is the seventh largest solar cell maker in the world and recently announced ambitious plans to expand into the thin-film solar business by making amorphous silicon panels (see Sanyo Builds New Factory, Enters Thin-Film Fray).