Top shareholders refuse to accept Renesas employees

JIJI

Three major shareholders of Renesas Electronics Corp. have declined to accept 1,000 employees from the struggling chip-maker, according to sources.

The government-backed investment fund Innovation Network Corp. of Japan has been asking NEC Corp., Hitachi Ltd. and Mitsubishi Electric Corp. to take on the employees in exchange for its financial assistance to the ailing Renesas.

The refusal by the three electronics makers made it more unlikely that an agreement on a bailout of Renesas will be reached anytime soon.

NEC, the largest shareholder of Renesas, declined the request apparently because it cut 10,000 jobs.

The investment fund has been asking Renesas to shed 3,000 to 5,000 jobs to help turn itself around in addition to 7,500 employees who have already applied for buyout packages.

The investment fund is considering joining Toyota Motor Corp. and others in injecting ¥200 billion in fresh capital into Renesas.

The fund has been offering to buy new Renesas shares at a price that is substantially lower than prevailing market prices. Friday on the Tokyo Stock Exchange, Renesas shares closed at ¥287.