Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Softbank Group Corp -- Ignore unavailable to you. Want to Upgrade?

To: b_spiral who wrote (3909)	2/14/2000 11:35:00 PM
From: Hans U. Tschanz	Respond to of 6018

Nippon Credit Bank to Be Sold to Softbank, Orix, Tokio Marine, Nikkei Says By Teo Chian Wei Nippon Credit to Be Sold to Softbank, Orix, Tokio, Nikkei Says Tokyo, Feb. 15 (Bloomberg) -- Softbank Corp., one of the world's largest Internet investment companies, will likely buy the failed Nippon Credit Bank Ltd. with a group of Japanese investors, the Nihon Keizai newspaper said, without citing sources. The government's Financial Reconstruction Commission, which is overseeing the deregulation of the country's financial system, will make an announcement later this month, the newspaper said. Financial Reconstruction Commission chairman Michio Ochi said this morning that no final decision had been made. Softbank and its partners declined to comment. For Softbank, getting the bank license would be another step to its ''online financial services mall.'' The company -- which already has operations including, securities trading, insurance and leasing -- last month agreed to start an online settlement service with Suruga Bank Ltd., a regional Japanese bank. Softbank, Orix Corp., the country's largest leasing company, and Tokio Marine & Fire Insurance Co., Japan's largest non-life insurer, will inject 100 billion yen ($919 million) into the bank and boost its cash to loans ratio to around 13 percent, the Nikkei said. The revamped Nippon Credit will specialize in providing funds and loans to Internet start-up companies, the newspaper reported. The group will acquire all shares of Nippon Credit for somewhere between 1 billon yen and 10 billion yen. The government will provide 200 billion yen in public funds through a purchase of preferred stock in Nippon Credit. Cerberus Partners LP, a U.S. fund specializing in buying failed companies, was the other bidder for Nippon Credit. Lehman Brothers Inc. and France's Paribas SA withdrew their bids last month. Nippon Credit Bank was the country's 14th largest before collapsing under bad debts and being placed under government control in December 1998. As at the end of September, Nippon Credit had 3.2 trillion yen of liabilities in excess of assets. The Nippon Credit sale would be the second sale of a nationalized bank this month by the government, after Long-Term Credit Bank of Japan Ltd. was sold to a group led by U.S. buyout firm Ripplewood Holdings LLC.