OSAKA -- Matsushita Electric Works Ltd. said Thursday it will postpone its plan to issue special stocks linked to the performance of electronics-related business divisions due to the ongoing slump in the information technology sector.
The company had earlier planned to issue so-called tracking stocks linked to its electronic materials and control devices divisions next spring, when the issuance of such stocks will be liberalized. Due to falling demand for electronic parts, however, the company expects a substantial deterioration in its overall business performance for the half-year period through November.
The company said it now sees little merit in raising funds with the tracking stocks under the planned schedule.
Matsushita, a leading maker of building materials and lighting equipment, said it will wait for an upturn in its business performance before issuing the stocks, without specifying how soon.
Tracking stocks -- already a popular scheme for raising funds in the United States -- allow a company to raise funds for certain affiliates or business divisions while maintaining full control over them.