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Empire Asset Investments Tracks Slovenian Gorenje As Panasonic Could Bid To Take It Over

This week Slovenian home appliances manufacture Gorenje said on Monday it had signed a deal with Japanese consumer electronics firm Panasonic Corporation that could lead to Panasonic taking it over.

"These activities may or may not lead to Panasonic's decision to launch a bid to increase its stake in Gorenje," the company said, adding both parties also agreed "the future role of Gorenje within Panasonic Group, should Panasonic through these activities obtain effective control of Gorenje."

Panasonic holds a stake of 10.74 percent in Gorenje, which has market capitalisation of about 161 million euros ($177 million).

If the Panasonic Corporation do take control of Gorenje then we should see an increase of home appliances manufactured with the combined technology of Gorenje and Panasonic in the latest models produced in Slovenia.

There is still room for growth in Gorenje shares based on speculation on how much Panasonic could be ready to pay for Gorenje rather than on the company's performance, stated Lee Goodman investment analyst for Empire Asset Investments.