Japan Govt Not to Back Shinsei Bank's Takeover Defense

Politics Economy

Tokyo, Nov. 23 (Jiji Press)--The Japanese government plans not to support Shinsei Bank's <8303> takeover defense measure against an unsolicited bid by online financial service company SBI Holdings Inc. <8473> to acquire control of the lender, it was learned Tuesday.

Unable to gain support from the government, a major shareholder of Shinsei Bank with a stake of over 20 pct, the bank's proposal to activate the takeover defense is likely to be voted down at an extraordinary shareholders' meeting slated for Thursday.

The major Japanese bank is expected to be forced to review its strategy to counter SBI's takeover attempt.

SBI launched a tender offer for Shinsei Bank in September to increase its equity ownership from around 20 pct to up to 48 pct and make the bank a consolidated subsidiary. The bid represents the first-ever hostile tender offer for a Japanese bank.

SBI aims to position Shinsei Bank as the core institution that leads the SBI group's banking operations and boost the group's earnings through collaboration with regional banks in which the company holds equity stakes.

[Copyright The Jiji Press, Ltd.]

Jiji Press