Sanyo shares up 14 pct after Reuters interview

Shares in Sanyo Electric soared to their highest this year after its senior executive told Reuters on June 16 that car makers in the United States, Japan and Europe have agreed to buy its lithium-ion batteries, assuring investors that it is well positioned to take advantage of growing demand for hybrid cars. Sanyo plans to start two auto-use lithium-ion battery plants in a year, but the world’s largest rechargeable battery maker has disclosed little about its customers, leaving market participants wondering how well its auto battery business is faring against rivals. But Sanyo Executive Vice President Mitsuru Homma told Reuters in an exclusive interview that the company has secured purchase agreements big enough to keep the new plants busy. Sanyo shares rose 14.3 percent in heavy turnover on June 17, the day after the exclusive interview, in a broader market up 0.9 percent.