Citigroup has prepared a $14 billion final bid for
Japan''s Nikko Cordial even as shares gained in volatile
latest bid for a possible takeover deal at $14 billion
would be the biggest-ever foreign buyout of a Japanese
firm, and while Nikko''s management has accepted the deal,
Citi will take tender offers for 30 trading days.
in Japan''s Nikko Cordial Corp. fell 0.3 per cent after
Citigroup said it would not sweeten its $14 billion takeover
bid for the brokerage a second time.
which is focusing on expanding its international business,
began accepting tenders on Thursday. Nikko''s shares had
surged after the US bank raised its offer price by 26
per cent earlier in the week, but Citigroup''s chief executive
for Japan Douglas Peterson said on Wednesday the new offer
price is full and it''s fair and it''s firm," Douglas
told a news conference. "It will not be raised."
stock rose ¥9 to within a yen of Citigroup''s ¥1,700
offer price immediately after the start of morning trade,
but closed lower at ¥1,685 yen.
benchmark Nikkei average rose 1.1 per cent and the brokerage
sub-index ISECU gained 1.85 per cent.
was forced to sweeten its initial bid of ¥1,350 yen
after Nikko, which is facing a probe over an accounting
scandal, escaped delisting by the Tokyo Stock Exchange,
a development that weakened the bank''s leverage against
North American investors who had dismissed its offer as
four US and Canadian investment funds that own about 25
per cent of Nikko have not commented on Citigroup''s new
offer, which still falls short of the 2,000 yen a share
that most of them have demanded.
which already owns 4.9 per cent of Nikko, is offering
to buy all shares and new-share warrants tendered and
is aiming for a minimum stake of 50 per cent.
the rest of Nikko''s outstanding shares would cost 1.578
trillion yen ($13.5 billion), and the purchase price could
rise to 1.677 trillion yen, including new-share warrants
issued as part of stock-option plans.
offer lapses on April 26.