Sony unveils fund raising plan

<p>Shares in Sony have fallen more than eight per cent today. </p>

Japanese electronics giant Sony has announced plans to raise billions of dollars in a sale of shares and convertible bonds in a bid to revive its struggling business.

It said it expected to raise about 440 billion yen (£2.28 billion) from the sale, which will finance increased production within its image sensor business. The company's shares have fallen more than eight per cent today (June 30th) after the announcement.

Sony said in April that it would spend 45 billion yen to boost sensor production capacity this fiscal year, on top of a 105 billion yen investment announced in February.

Tomoyuki Suzuki, head of Sony's device solutions business, told Reuters that demand for sensors was now so strong that it was struggling to keep up. He expects sensor sales to grow by nearly a quarter to 550 billion yen in the year ending March.

In contrast, last year, Sony's chief executive officer Kazuo Hirai announced the company would cut 15 per cent of the staff in its mobile division, which is struggling against giants such as Samsung Electronics and Apple.

The company has also forecast sales at its TV business to fall around 6 per cent to 1.16 trillion yen.

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