Former Nissan chairman: Merger negotiations with Honda indicate the company is in a "panic mode" and finding synergies is difficult for both parties.

Former Nissan chairman Carlos Ghosn has stated that Nissan is seeking a deal with Honda Motor Co., Ltd. Sponsored ADR (HMC.US), indicating that the former is in "panic mode." Ghosn said on Friday, "This is a desperate move, it's not a practical deal, to be honest, it's hard to find synergy between the two companies." Honda confirmed this week that the company is considering several options, including merging with Nissan, forming a capital tie-up, or establishing a holding company. While Taiwanese iPhone manufacturer Foxconn has also shown interest in Nissan, reports earlier on Friday suggested that Foxconn has put its acquisition of Nissan on hold. Ghosn mentioned that Nissan and Honda operate similar brands and products in the same market, casting doubt on the benefits of a merger. He believes that the Japanese Ministry of Economy, Trade and Industry is pushing the deal with Honda. "They are trying to find a way to merge Nissan's short-term issues with Honda's long-term vision," Ghosn said. While this deal "doesn't make industrial sense," there will always be a time when you have to choose between performance and control. Ghosn, 70, has been living in Beirut since narrowly escaping Japan five years ago this month. While on bail facing allegations of financial misconduct, he hired a father-and-son extradition team to hide him in a music equipment case and escaped to Lebanon via a private jet, as Lebanon rarely extradites its citizens. The legal battle between Ghosn and Nissan has been going on for over six years, stemming from internal executives at Nissan arranging for Ghosn to be arrested and ousted from the company. The manufacturer claims its former chairman underreported income and misappropriated company assets for personal gain. Ghosn denies these accusations and accuses Nissan of damaging his finances and reputation. Ghosn said on Friday that he understands why Foxconn is interested in acquiring a car company at a low price, as the company has been trying to break into the electric vehicle market for years. Ghosn said, "I can understand companies led by very serious and pragmatic management like Foxconn say, 'You know, instead of investing in producing our own electric cars, let's just buy a car company.'" "They won't be the only ones trying to do that."