Matsushita to keep real estate unit

OSAKA (Kyodo) The Matsushita Electric Industrial Co. group has scrapped a plan to sell Matsushita Investment and Development Co. to Daiwa House Industry Co., according to group sources.

The Matsushita group informed Daiwa on Monday of its decision to instead find a sponsor firm for the heavily indebted real estate company's rehabilitation, they said.

The group is in talks with several potential investors, including foreign firms, the sources said.

The group had second thoughts about selling the company to Daiwa after Daiwa said it wanted to buy only the office building division. "We won't sell the company unless the buyer purchases the entire firm," one insider said.