Shares in PT Bank Panin Tbk rose as much as 6.3 percent on Tuesday after sources said Japan's Mizuho Financial Group Inc has approached Australia and New Zealand Banking Group to buy ANZ's 39.2 percent stake, valued around $570 million, in the Indonesian lender.
Two weeks ago, Singapore's DBS Group Holdings Ltd decided to drop its bid for Bank Danamon after 16 months of negotiation, cancelling a $7.2 billion takeover that was set to be Southeast Asia's biggest bank M&A deal but also seen as opening the door for Japanese and Chinese investors.
Panin Group recently sold a 40 percent stake in its insurance unit PT Panin Life for $336.5 million to another Japanese company, Dai-ichi Life Insurance Co Ltd .
Shares of Bank Panin were up 4.8 percent at 660 rupiah. Indonesian banking stocks rose 0.2 percent, while the broader Jakarta Composite Index was up 0.3 percent.
1128 (0428 GMT) (Reporting by Andjarsari Paramaditha; Editing by Chris Gallagher)