Softbank, Japanese Gov't Fail to Reach Agreement on NCB Sale
By Takahiko Hyuga
Tokyo, May 31 (Bloomberg) -- Softbank Corp. and its partners failed to reach an agreement with the Japanese government on the sale of the failed Nippon Credit Bank Ltd., a member on the government's committee selling the bank said.
The Financial Reconstruction Commission, Japan's financial regulator, and the Softbank-led group missed their second deadline to complete the terms of the 100 billion yen ($938 million) sale, the committee member said.
The government may ask for a new round of bids for the nation-wide lender, the second being sold since the government nationalized several banks in 1998. It also has the option of setting a new deadline or continuing negotiations.
The FRC said it will hold a press conference at 3:30 P.M. Japan time to outline its options.
An agreement on the Nippon Credit sale would have been Japan's second step in rebuilding a banking system crippled by an almost decade-long economic slump. The first stage was completed last year, when the government sold Long-Term Credit Bank of Japan Ltd., another nationalized lender, to a group led by U.S. buyout firm Ripplewood Holdings LLC.
For Softbank, the purchase represents the crux of its plan to create an online financial supermarket.
The Softbank group, which includes Tokio Marine & Fire Insurance Co. and Orix Corp., in February won the exclusive right to negotiate the purchase from the government, and has been working out the fine points ever since.
The Softbank group beat out a bid by Cerberus Partners LP, a U.S. buyout fund, which was the only other bidder to make it to the final round.
Namihaya Bank Sale
At the same time, the government said Daiwa Bank Ltd., Japan's 10th largest bank, will take over Osaka-based Namihaya Bank Ltd., a failed regional lender after it lost bid for Kofuku Bank Ltd. No terms were disclosed.
The committee negotiating the sales, which was approved by parliament, is headed by FRC Chairman Sadakazu Tanigaki, and includes Atsushi Shimizu, a former chairman of a Japan's regional court, Tetsuya Katada, chairman of Komatsu Ltd., Hiroshi Nakachi, an accountant, and Asahiko Isobe, president at a research institute of Hitachi Ltd.
In February, Softbank and its partners signed an initial agreement to buy a controlling stake in Nippon Credit for about 100 billion yen ($938 million), giving it the exclusive right to negotiate the details for two months.
That deadline passed, and in April, the government extended the negotiation period to May 31 amid differences between the Softbank group and regulators over management plans and other terms, said FRC Chairman Tanigaki |
