TOKYO, Sept 22 (Reuters) - Shares in Japan's Panasonic Corp surged on Wednesday on a newspaper report that it would not be issuing new shares to finance the buyout of Sanyo Electric and another affiliate.
Panasonic, the world's fourth-largest flat TV maker, said in a statement it had not yet decided how it would finance a tender offer to buy shares of Sanyo Electric and Panasonic Electric that it doesn't already own.
Panasonic said in July it would raise 500 billion yen ($5.9 billion) via a new share issue and that the total cost of the purchases would be around 818 billion yen ($9.6 billion).
The stock rose 4 percent to 1,155 yen after the Nikkei business daily said the company would not be issuing new shares, outperforming a flat broader market.
It was the biggest gainer by percentage on the Nikkei 225 index, with more than 15 million Panasonic shares changing hands, 60 percent more than the 90-day average daily volume.
Panasonic owns 51 percent of Panasonic Electric, a maker of housing materials, and last year bought a 50 percent stake in Sanyo, giving it control of the world's biggest maker of rechargeable batteries used in cars and electronic devices. (Reporting by Tim Kelly; Editing by Edwina Gibbs)