Exclusive: Banks offer to help Sony offload battery unit – sources

TOKYO (Reuters) – Sony Corp has been approached by at least three investment banks offering to sell its battery business as the struggling Japanese group looks to offload non-core assets and focus on reviving its consumer electronics business, banking sources said.

Selling the unit, which employs 2,700 people and had sales last year of $ 1.74 billion, would help Sony cut costs and generate cash as it restructures its operations, three people involved in the preliminary discussions told Reuters.

The company, a byword for innovative gadgetry in the 1970s and 80s, has been battered by weak demand for its TVs in a fiercely competitive market. The TV business has racked up huge losses; Sony’s market value has slumped to below $ 10 billion and ratings agency Fitch last week downgraded the company’s debt to “junk” status – a move likely to push up borrowing costs and make asset sales more attractive.

CEO Kazuo Hirai has pledged to rebuild Sony around gaming, digital imaging and mobile devices, while nurturing new businesses such as medical devices. He is axing 10,000 jobs, closing facilities and selling assets. Any disposals would be part of a broader “garage sale” by Japan’s leading electronics groups that are hurting in weak markets and tight financing.

Potential buyers for Sony Energy Devices Corp – founded in 1975 as Sony-Eveready, a joint venture with Union Carbide Corp – could include Taiwan’s Hon Hai Precision Industry and BYD Co Ltd, a Chinese carmaker backed by billionaire investor Warren Buffett, said one of the sources. Hon Hai is also in negotiations to become rival TV maker Sharp Corp’s biggest shareholder.

FOREIGN INTEREST

Despite a strong yen, interest is likely to come mainly from potential foreign buyers, said the sources, who did not want to be named as the talks are private.

Selling the business overseas may not go down well with a Japanese government that in the past has kept technology at home by promoting alliances between local producers. Panasonic Corp, NEC Corp and Hitachi Ltd also make lithium-ion batteries, though the firms’ fabrication technology differs.

Sony declined to comment on the possible sale of the business, which makes lithium-ion batteries used in smartphones, tablets and PCs. “At our corporate strategy announcement in April, (Hirai) said we would explore possible alliances in E-vehicle batteries and battery storage,” said spokesman George Boyd.

As with TVs, Sony has struggled to compete against South Korean rivals in a battery business that is worth $ 18 billion a year. The small cells that power mobile devices now account for around 60 percent of the market, ahead of those used in cars and electrical tools, according to research company IHS iSuppli.

While lithium-ion battery demand has steadily expanded with the boom in mobile consumer electronics, severe price competition has resulted in razor thin margins that favor large-scale manufacturers with weak local currencies.

“The battery business is a prime example of the company’s loss-making and unwanted assets. It doesn’t make sense for them to keep it,” said one of the banking sources.

FALLING MARKET SHARE

As Hirai doubles down on Sony’s strength in consumer electronics, the company has sold a chemicals company, with 2,900 workers, and may also let go its U.S. headquarters building in New York go. At the same time, it has spent close to $ 2 billion on a U.S. game clouding company and a stake in medical equipment maker Olympus Corp.

Sony produced 74 million lithium-ion battery cells in July-September – almost 40 percent fewer than in the first quarter of 2008, when its output topped Samsung SDI Co Ltd’s 110 million and LG Chem Ltd’s 54 million, according to Techno System Research in Tokyo. Sony’s market share is now 7 percent, dwarfed by Samsung SDI’s 27 percent, Panasonic’s 21 percent and LG Chem’s 17 percent.

Sony’s battery unit, which also makes button batteries for watches and smaller appliances and optical devices, has three factories in Japan and two overseas assembly plants in China and Singapore. It has yet to enter the more lucrative business for automotive batteries.

In its most recent filing, Sony valued the battery unit’s fixed assets, including production sites and machinery, at 52 billion yen ($ 633 million). Under Sony’s accounting rules, asset sales are typically booked as operating profit.

The cost to protect $ 10 million of Sony debt against default for five years has edged higher this week to almost $ 400,000. The CDS spreads had tumbled earlier this month – from above 480 basis points – after Sony said it would raise 150 billion yen ($ 1.9 billion) through a sale of convertible bonds.

($ 1 = 82.1200 Japanese yen)

(Additional reporting by Reiji Murai; Editing by Ian Geoghegan)

Tech News Headlines – Yahoo! News

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The Complete List: 'Dancing with the Stars' Winners

The Complete List: 'Dancing with the Stars' Winners

On Tuesday night, TV personality and former Bachelor contestant Melissa Rycroft became the latest Dancing with the Stars victor! Click through the gallery for a look back at all the previous mirror ball winners.

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Bus-crash horror kills boy, 6, in home

Wayne Carrington

LONG ISLAND NIGHTMARE: This Nassau County bus killed a Hempstead boy asleep in his bedroom last night.

A bus crashed into a home in Hempstead, LI, last night, killing a 6-year-old boy and injuring his 7-year-old brother — both of whom were sleeping peacefully inside.

“He was just in a bad spot,” said Hempstead Police Sgt. Mark Kirichenko, referring to the younger boy.

Eleven people on the bus and a pedestrian were also injured.

The tragedy occurred around 9:30 p.m. when the driver of a Nassau Inter County Express bus swerved to avoid striking a pedestrian, officials said.

The driver honked his horn three times, but the pedestrian continued crossing against the light, according to a police spokesman.

“He tries to avoid him and is forced to make a hard right turn, hops the curb and strikes the house,” the spokesman said.

José Antonio Villagran, 50, who lives in the Fulton Avenue home, said, “I was sleeping when suddenly, the big crash happened.”

“I heard a big boom and I thought it was the end of the world,” Villagran said.

He and another resident, Edgar Laso, saw the 6-year-old pinned by the bus and rushed to the child’s aid.

“Some of us tried to save the baby,” said Laso.

The boy, whose name was withheld, later died at Winthrop University Hospital in Mineola, cops said.

The victim’s older brother was also rushed to that hospital. A family friend said that boy’s injuries appeared minor.

The bus also hit the pedestrian — who was rushed to Nassau University Medical Center in East meadow in critical condition.

Carlos Lopez said he spoke to a witness who said the pedestrian had just left a 24-hour Laundromat when he was struck.

There were at least 20 passengers on the Route N70 bus when the accident occurred.

Police said that no criminality was suspected.

“NICE is cooperating with police officials, and has its own team investigating the incident,” a spokesman for the bus company said.

NICE was taken over by Veolia Transportation on Jan. 1 after Nassau County switched from the MTA, which had operated buses in the county for 37 years.

County Executive Edward Mangano decided on Veolia after the MTA said that Nassau needed to pay $26 million more for the bus services.

Nick Stein

Paramedics tend to one of the victims.

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Police: Man detained after dynamite comments at Miami airport

A man at Miami International Airport who said he had dynamite in his luggage — because he thought it would be funny — was arrested Monday, according to Miami-Dade police.

The suspicious luggage led to a partial evacuation at Concourse J. The Miami-Dade police bomb squad searched the bag and found no explosives, police said.

Alejandro Leon Hurtado, 63, of Guatemala, was at the TACA Airlines ticket counter shortly after noon, checking in for his flight, when a ticket agent asked if he had any hazardous materials in luggage, according to an arrest affidavit. Hurtado answered that he had dynamite.

The agent asked Hurtado again, the affidavit said, and a second time he said he had dynamite, then laughed.

“Once the defendant was told that the police were going to be called, the defendant stated that he was joking,” the affidavit said.

Hurtado told police that he had said he had dynamite and meant it to be a joke.

But the police didn’t find it funny. They charged him with one count of false report of a bomb or explosives at an airport.

The investigation delayed one outgoing Avianca Airlines flight by an hour. Some arriving international arrivals were also delayed, airport spokesman Greg Chin said.

Miami Herald staff writer Diana Moskovitz contributed to this report.

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HTC confirms 5-inch ‘Deluxe’ smartphone won’t launch in Europe

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How Zero Dark Thirty Copied Bin Laden's Compound

Oscar-winning director Kathryn Bigelow reteams with her Hurt Locker screenwriter Mark Boal for Zero Dark Thirty, a chronicling of the hunt for Osama bin Laden, and the two opened up to Nightline about how they recreated bin Laden's compound.

VIDEO: Zero Dark Thirty Trailer

The filmmakers built a full-scale version of the compound in Jordan, and Bigelow says that everything from the carpet to the marks on the walls were taken from ABC News footage that she studied frame by frame.

"Everything we could find from that video we replicated," Bigelow said. "Every conceivable piece of information that we could find we replicated."

As to the controversy over whether or not the filmmakers received classified information to make the movie, Mark Boal says, "I certainly did a lot of homework, but I never asked for classified materials. To my knowledge I never received any."

Zero Dark Thirty, starring Jessica Chastain, Kyle Chandler, James Gandolfini, Chris Pratt and Jennifer Ehle, hits theaters January 11.

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Push to do the ‘rate’ thing

The City Council and city’s Taxi and Limousine Commission sparred yesterday over a new taxi design that eliminates printed fares from the sides of taxicabs.

Councilman James Vacca (D-Bronx), Transportation Committee chair, is pushing a bill to require the TLC to reinstate the printed fares, which the city dropped earlier this year.

“I think passengers have a right to know before they get in a cab what the fare would be,” Vacca said.

He also criticized the TLC for changing the iconic “Taxi” decal on cabs to a single “T” decal.

TLC officials testified yesterday at Vacca’s hearing that the printed rates are confusing and ugly and that TV monitors inside taxis will soon show riders the rates in real time during their rides.

That feature will be available when the taxi TV system is upgraded in February.

Since the final cost of a trip “is really a formula” that depends on traffic, per-mile fares “can be misleading” to passengers, said Ashwini Chhabra, a TLC deputy commissioner.

He added,“The fact is, we now have technology aids that we didn’t have back when the exterior fare markings were originally conceived.”

The TLC opposes Vacca’s bill, which the mayor is likely to veto, should it pass the council.

It is unclear if the bill has the necessary support from Council Speaker Christine Quinn to move forward.

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Shoppers welcome holiday sales by buying early, often — and online

Shoppers swooped into stores in droves on Thanksgiving weekend, topping last year’s sales, as more retailers opened their doors earlier than ever on Thursday, luring bargain hunters away from eating another plate of turkey.

And now Cyber Monday is expected to set a record for online shopping this year, for those who prefer the Internet to the mall.

Spending per shopper nationwide averaged $423 — $25 more than last year — from Thursday to Sunday, while total spending increased nearly 13 percent, to an estimated $59.1 billion, according to a survey by the National Retail Federation.

“I think the only way to describe the Thanksgiving openings is to call it a huge win,” said Matthew Shay, the trade group’s president and chief executive. Shopping, he said, “has really become an extension of the day’s festivities.”

South Florida was no exception, as a flurry of stores, as well as several malls, opened on Thanksgiving. Thursday has seemingly become the new Black Thursday, taking a bite out of the old-fashioned kickoff day of the holiday, Black Friday.

“We had an excellent weekend,” said Humberto Maldonado, director of marketing for Dadeland Mall, which opened at midnight on Thursday. Sales figures are not yet in, but the overall trend was up from last year, he said Monday.

“It was really busy from midnight to 5 a.m., then it slowed, and picked up again at 7 a.m. or 8 a.m., and stayed busy all day on Friday,” Maldonado said.

Nationwide, about 35 million people visited stores and shopping websites Thursday, up from 29 million last year. More than double that number — 89 million, up from 86 million — shopped on Black Friday.

“There were more people shopping every single day of the weekend,” Shay said.

Topping off the weekend, Cyber Monday’s early results, tabulated at 3 p.m. Monday, showed that online shopping was up a whopping 25.6 percent compared with the same time period a year ago, according to figures by IBM Benchmark.

Nationwide, most of the weekend’s shoppers — roughly 58 percent — bought clothing and accessories. Another 38 percent bought electronics and 35 percent shelled out for toys, National Retail Federation figures show.

Retailers made an effort to lure people in, with updated mobile shopping applications for smartphones and tablets, and expanded shipping and layaway options.

Still, it remains to be seen whether increased sales over the Thanksgiving weekend will translate to higher sales throughout the holiday shopping season. Analysts have been predicting mediocre sales this year, nationwide, as shoppers remain uncertain about the broader economy. Overall holiday sales are expected to increase 4.1 percent from 2011, compared with sales growth of 5.6 percent last year, the National Retail Federation said.

However, Florida is expected to beat those figures. Buoyed in large part by tourists and snowbirds, the Florida Retail Federation is forecasting a 5.3 percent gain this year over last, to $58 billion, marking the highest percentage growth predicted since the recession. Pre-recession, retail sales peaked at $54.3 billion in 2006.

Christian Cutillo, 26, of Weston, hit Walmart, then Sears, Target and Old Navy after eating Thanksgiving dinner.

She began at 7:30 p.m. Thursday and by 3 a.m. Friday she had finished shopping for all 15 people on her list, mostly buying clothing and toys.

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Flurry of new bills filed in Tallahassee

TALLAHASSEE --
Florida lawmakers have filed their first bills of the season.

Most are familiar: a ban on texting while driving, a requirement that parasailing operators carry insurance and a “foreign law” bill criticized by opponents as anti-Islamic.

Sen. Nancy Detert, R-Venice, says she will keep sponsoring the texting while driving measure until it passes. It nearly survived the Senate last year. But former House Speaker Dean Cannon, R-Winter Park, blocked the measure in his chamber, calling it a potential infringement on personal liberty that would be difficult to enforce.

Under Detert’s latest proposal, SB 52, law enforcement officers could tack a $30 texting fine on a driver stopped for another violation. The penalty would not apply to drivers reading a navigational device or traffic safety information, the proposal states.

Detert pitched the measure as “common sense” middle ground. Some lawmakers oppose all new government oversight while others think the rules should go further — banning the use of all electronic devices while driving, Detert said.

“We should put it before members and let them vote on it. And whatever they decide, so be it,” said Detert, adding that she thinks the bill stands a better chance with Rep. Will Weatherford, R-Wesley Chapel, now speaker.

Weatherford has been publicly impartial on the issue, saying the state needs to balance driver protection with individual rights. He plans to allow lawmakers to hash it out in committee, spokesman Ryan Duffy said. Rep. Doug Holder, R-Sarasota, is sponsoring the proposal in the House.

None of the bills filed so far address unemployment, foreclosures or healthcare, which lawmakers often tout as the most important issues facing the state.

A “foreign law” bill is bound to stir controversy in 2013, as it did it 2012.

SB 58, sponsored by Sen. Alan Hays, R-Umatilla, would make sure Florida law trumps foreign law in marriage, divorce and custody cases. Hays says the proposal doesn’t target a particular group, although he spurred protests from clergy of several faiths in 2012 by delivering anti-Islamic brochures to fellow senators days before a scheduled vote.

The proposal passed the House but stalled in the Senate.

A bill to regulate parasailing companies is also on the horizon after languishing last year under pressure from lobbyists.

Sen. Maria Sachs, D-Boca Raton, filed SB 64, to require parasailing businesses to use sturdy equipment, carry insurance, offer a safety briefing to passengers and not operate in bad weather. The bill is named the White-Miskell Act after Amber White and Kathleen Miskell, who died parasailing in South Florida.

“We need to encourage the industry, to promote it and protect it, and these operators know the best way to do that is protect the people,” Sachs said.

Parasailing is virtually unregulated in Florida (and almost everywhere else), with the state’s 120 companies required only to have a boat license. Parasailing accidents have caused at least four deaths in Florida within the past two years, something most beachgoers don’t realize as they’re strapped into a harness to dangle hundreds of feet over the water.

Lawmakers have filed bills to make sure citizens have the opportunity to testify before government boards or committees take action (SB 50) and to ensure that men and women have equal rights (SB 54). Lawmakers also have filed 19 claims bills, in which victims or their families are seeking damages for an injury or death caused by government employees.

House and Senate committees will begin meeting next month . The 60-day lawmaking session is scheduled to convene March 5.

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Justin Bieber Defends Meeting Prime Minister in Overalls

After catching a bit of flack for meeting with the Canadian Prime Minister in a decidedly casual pair of overalls, Justin Bieber took to Instagram Sunday to explain himself.

Related: Justin Bieber on Selena, His Favorite Things

"The pic of me and the Prime Minister was taken in a room in the arena where I was performing at that day," Bieber wrote in response to a journalist who criticized the move as "white trash."

"I walked straight from my meet and greet to him," he explained further. "It wasn't like it was like I was going into his environment we were at a hockey arena. Wow am I ever white trash."

The superstar (seen above) was snapped in Canada this week to accept a Diamond Jubilee Medal from the leader of his home country, Stephen Harper.

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