Ford may announce plan to sell 20% Mazda stake

TOKYO (Reuters) - Embattled U.S. automaker Ford Motor Co (F.N) may announce plans to sell a 20 percent stake in long-time affiliate Mazda Motor Corp (7261.T) as early as Tuesday, the Nikkei business daily reported.

Ford, which has a controlling 33.4 percent stake in the Japanese automaker, is scrambling to raise cash to turn around its business, battered by slumping sales in the United States and other markets.

Mazda's shares jumped on the report, ending the day 6.4 percent higher at 184 yen.

The move had been expected after Japanese broadcaster NHK reported more than a month ago that Ford was looking to shed about a one-fifth stake in Mazda.

At the time, Mazda had a market capitalisation of 408.5 billion yen (2.8 billion pounds), valuing a 20 percent stake at around $850 million (566 million pounds). At Tuesday's closing price, Mazda was valued at about $2.7 billion.

A Mazda spokesman declined to comment on the report.

Ford first took an equity stake in Mazda in 1979 and brought it under its control in 1996 as the Hiroshima-based carmaker struggled to survive. Since then, Ford has sent top executives to join Mazda's board, including four CEOs. The partners share vehicle platforms and engineering resources and own several assembly plants together in the United States, Thailand and China.

Media reports have named trading houses Sumitomo Corp (8053.T) and Itochu Corp (8001.T), auto parts maker Denso Corp (6902.T), non-life insurance companies including Tokio Marine Holdings Inc (8766.T) as possible buyers of the Mazda shares.

Mazda is also expected to buy back a portion of its shares.