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.