DKB won't buy RI bank

DKB won't buy RI bank

TOKYO (Dow Jones): Dai-Ichi Kangyo Bank Ltd. said Wednesday it has decided to decline the offer by Daiwa Bank of a stake in Daiwa Bank's 85 percent-owned subsidiary in Indonesia, PT Daiwa Perdania Bank.

Dai-Ichi Kangyo Bank could not solve differences with Daiwa Bank over the terms of the deal, a Dai-Ichi Kangyo Bank spokesman said, declining to elaborate further.

The Nihon Keizai Shimbun said the two Japanese banks apparently failed to reach an agreement over how much of a stake Daiwa Bank would retain in the Indonesian bank after the sale.

While Dai-Ichi Kangyo Bank sought to acquire more than 50 percent of Daiwa Perdania shares to obtain management control in the Indonesian bank, Daiwa Bank insisted it keep some of its managerial influence, the newspaper said.

Daiwa Bank originally planned to sell a controlling stake to Dai-Ichi Kangyo Bank in line with a plan submitted to the government in which it said it would withdraw from foreign banking operations, the newspaper said.