Exclusive-NEC spurned private equity offers before selling discounted stake in iPhone supplier, sources say

Japan's NEC received multiple buyout offers from global private equity funds for iPhone supplier Japan Aviation Electronics Industry before agreeing to sell back much of its 51% stake to the Japanese company at a discount, five people said. At least three global funds all made offers to both NEC and its listed subsidiary JAE, indicating they were willing to pay substantial premiums to buy out the maker of electronics components, the people said, all of whom declined to be identified because the talks were private. The existence of those offers, which has not been previously reported, could open IT services and software firm NEC and JAE up to criticism they potentially failed to act in the best interest of shareholders, governance experts said.