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Market Scramble: PanaHome valuation dispute renews debate on cash-rich subsidiaries

Panasonic unit isn't the only listed Japanese company to 'deposit' money with group members

TOKYO -- Panasonic's closely watched bid for listed subsidiary PanaHome is a classic case of the problem of protecting minority shareholders during takeovers, with the added twist of a big pile of a cash.

Under an agreement to be put before shareholders in June, Panasonic will seek to acquire the portion of the homebuilder it does not own through a share swap. It has proposed a swap ratio of 0.8 share of Panasonic for each of share of the subsidiary.

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