Japanese electronics maker Matsushita Electric Industrial has cut off talks with U.S. investment fund TPG over the sale of troubled subsidiary Victor Co. of Japan, and will instead begin negotiations with Kenwood , a news report said Sunday.
Matsushita and TPG ended talks on Saturday after failing to bridge differences over how much financial assistance JVC would require after the sale, according to a report in Japan's largest business daily, The Nikkei.
Matsushita hopes to seal a deal with Kenwood over the ailing electronics appliance maker as soon as possible, the newspaper reported.
Matsushita and JVC officials were not available for comment Sunday.
JVC, which 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 subsidiary that loses money at booming Matsushita, which makes Panasonic brand products.
Founded in 1927, JVC was originally a subsidiary of the U.S. record company Victor, but cut those 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.