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. Last Updated: 07/27/2016

Softbank Misses Bid Deadline




TOKYO -- Japanese Internet investor Softbank Corp. and its partners have missed a Wednesday deadline for agreeing to terms with the government on buying failed Nippon Credit Bank, financial authorities said.


Japan's Financial Reconstruction Commission said it was ready to reopen talks with other companies on the sale, a development analysts said may reflect Softbank's weakening financial position after the recent plunge in its share price.


A senior FRC official said there were differences between over the proper size of loan-loss provisions against NCB's problem loans. But he emphasized the government will continue to negotiate with Softbank.


"From the viewpoint of its cash position, it might be better for Softbank if it were to abandon the purchase of Nippon Credit Bank," said Soichiro Fukuda, an analyst at IBJ Securities.


Softbank faces an uphill battle to halt the more than 70 percent slide in its share price from its February peak amid investor concern about its true valuation.