Moody's: TDK on review

Moody's Investors Service said it placed the A1 issuer rating of TDK Corp. under review for downgrade.

This action is in response to the company's announcement that TDK and Epcos AG (not rated) had agreed to consolidate TDK's electronic component business.

As a first step, TDK plans to acquire the majority of Epcos' shares for €17.85 per share by in a tender offer.

Moody's said it believes the acquisition can strengthen TDK's overall position and customer reach in its core electronic component market as well as contribute to its regional and customer diversification.

The agency also noted that TDK's leverage may rise because of the acquisition.

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