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Namco proposes Sega merger plan

Japanese publisher Namco has publicly proposed a merger with rival Sega, calling on the former platform holder to reopen merger talks rather than proceeding with its currently planned merge with gambling machine manufacturer Sammy.

According to the Japanese financial press, Namco has proposed a deal which would see the two companies merging early in 2004, with Sega being the surviving entity on the stock markets.

A merger between the two would create the fifth largest publisher in Japan, with annual sales of around 350 billion Yen (