Citigroup launches 2nd round of Nikko Cordial bidding+

TOKYO, April 20 Kyodo -
U.S. financial giant Citigroup Inc. launched its second round of bidding Monday
to secure a buyer for Nikko Cordial Securities Inc., a key Japanese unit, and
the bulk of Nikko Citigroup Ltd., with Japan's three top banking groups eyed as
possible contenders, sources familiar with the matter said.
The selling price is expected to be around 500 billion yen, the sources said.
The entities that have shown interest in buying are Mitsubishi UFJ Financial
Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group
Inc.
While Mitsubishi UFJ and Sumitomo Mitsui Financial seem to be strong
contenders, Mizuho Financial Group is viewed as trailing behind as it lacks
spare capacity for investment, according to the sources.
The first round of bidding by the three Japanese banking groups took place in
February.
In January, Citigroup had worked out a restructuring plan which designated
Nikko Cordial and Nikko Asset Management Co., another Japanese unit, as
non-core operations. Nikko Citigroup was expected to be retained as a core unit
but in line with streamlining operations, Citigroup eventually decided to sell
the bulk of Nikko Citigroup's operations, the sources said.
Regarding Nikko Asset which engages in asset management services, Citigroup has
already sounded out domestic and overseas financial institutions interested in
buying it.
Nikko Asset was excluded from the bidding with its sale set to be carried out
separately and likely to begin next month or later, the sources said.
==Kyodo
2009-04-20 20:59:29