General Electric Co., the world's second-largest company by market value, has delayed an auction of its Japanese consumer lending unit Lake, it was learned Friday.
A first round of nonbinding offers scheduled for last Monday was postponed after potential buyers complained about how GE and its adviser, UBS AG, handled the sale, two of six people briefed on the decision said. They declined to be identified as the talks are private. GE aims to restart the auction within 60 days, one of them said.
Japan's consumer loan industry has been racked by losses after lawmakers and courts cracked down on lending practices and gave borrowers more scope for demanding interest refunds. Fairfield, Conn.-based GE ranks sixth among consumer lenders in Japan, behind Citigroup Inc.