The group led by Japan Industrial Partners is likely to miss the deadline for borrowing money for the Toshiba buyout – Kyodo.
The Kyodo news agency reported on Wednesday that the preferred bidder to buy out Toshiba (OTC:TOSYY) Corp, a group led by private equity firm Japan Industrial Partners (JIP), is likely to miss the deadline to get bank loans for the deal.
Kyodo didn’t say where the information came from.
The news caused Toshiba’s stock to drop by 2%, reversing earlier gains.
Related: When news comes out about a possible $19 billion buyout, Toshiba shares go up.
In a second round of bidding on October 7, Toshiba gave the group led by JIP the status of “preferred bidder.” However, people who are familiar with the situation say that Toshiba is still open to proposals from other groups.
Sources close to the situation have told Reuters that JIP’s first offer was less than 6,000 yen per share. This means that a possible tender offer would be worth less than 2.6 trillion yen ($17.55 billion).
JIP has asked Japanese companies like Orix (NYSE:IX) Corp. and Chubu Electric Power Co., Inc. to join.
($1 = 148.1200 yen)
