Two Japanese banks cancel merger
BBC
Published May 14, 2010 Reviewed Jul 2, 2026 ✓ Reviewed by citations.press editors
Shinsei Bank posted a net loss of 140 billion yen for the year.
Mizuho Financial plans a share issue worth 800 billion yen to boost its capital.
Shinsei Bank is one‑third owned by US buyout firm JC Flowers and 24 % owned by the Japanese government.
Shinsei shares fell 4.5 % to 106 yen and Aozora shares fell 5 % to 114 yen.
Shinsei Bank and Aozora Bank cancelled a merger that would have created Japan's sixth-largest bank.
The merger cancellation followed consideration of changes in the business environment since merger plans were announced in July 2009.
Shinsei posted a net loss of 140 billion yen, equivalent to $1.5 billion and £1 billion.
Shinsei Bank's stock ended down 4.5% at 106 yen.
Aozora Bank's stock ended down 5% at 114 yen.
Mizuho Financial, Japan's second-biggest bank, plans to boost capital through a share issue worth 800 billion yen.
Mizuho Financial plans to boost capital through a share issue worth 800bn yen.
Shinsei Bank and Aozora Bank cancelled a merger that would have created Japan's sixth‑largest bank.
Shinsei Bank president Masamoto Yashiro said the bank would raise less than 100 billion yen of capital during the current financial year.
The banks announced the merger plans in July 2009.
Shinsei Bank and Aozora Bank announced merger plans in July 2009.
Shinsei posted a net loss of 140 billion yen (1.5 billion USD; 1 billion GBP) for the year.
Shinsei is one-third owned by US buyout firm JC Flowers and 24% owned by the government.
Shinsei's president Masamoto Yashiro stated that the bank would like to raise capital during this financial year, with the amount being less than 100 billion yen.
Mizuho Financial planned to boost capital through a share issue worth 800 billion yen.
Shinsei Bank's president Masamoto Yashiro stated the bank aims to raise less than 100 billion yen in capital during the current financial year.
Shinsei's share price fell 4.5% to 106 yen, while Aozora's fell 5% to 114 yen.
Japan's Shinsei Bank and Aozora Bank have cancelled a merger that would have created the country's sixth-largest bank.
The firms said they were calling off the deal after considering changes in the business environment since they announced merger plans in July 2009.
It came as Shinsei posted a net loss of 140bn yen ($1.5bn; £1bn) for the year.
It is one-third owned by US buyout firm JC Flowers and 24% owned by the government.
It said it would now focus more on the retail rather than investment banking.
Shinsei also said it was hoping to boost its capital this year.
"We would like to raise capital during this financial year, though the amount will not be that big," said the bank's president Masamoto Yashiro, adding it would be less than 100bn yen.
Shinsei ended down 4.5% at 106 yen and Aozora down 5% at 114 yen.
Meanwhile, Japan's second-biggest bank, Mizuho Financial, said it planned to boost capital through a share issue worth 800bn yen.
