Two financial groups, both of which include U.S. investment funds, are leading the race to buy the failed Tokyo Sowa Bank, industry sources said Wednesday.
The two contenders -- U.S. private equity fund Lone Star Fund and a consortium formed by Shinsei Bank and U.S. investment fund Cerberus group -- are running ahead of the two other bidders, the sources said.
But Lone Star appeared to be in a slightly better position than the Shinsei-Cerberus group because its takeover proposal would require less money from the government, some sources said.
Administrators of the regional bank plan to make the final decision after a meeting today with senior officials of the Financial Services Agency, the sources said.
Tokyo Sowa was declared insolvent by the government in June 1999 and was to be acquired by Asia Recovery Fund, led by U.S. financier Wilbur R. Ross, by Nov. 30. However, the administrators and the government canceled the sale due to a row over loan-loss charges.
Earlier this month, the administrators reopened bidding for Tokyo Sowa and the Ross-led fund rejoined the bidding.
The other contenders are a group formed by Pasona Softbank Inc., a joint venture between job placement company Pasona Inc. and Internet investor Softbank Corp., and U.S. investment company Moore Capital.