UPDATE 1-SMFG in 2nd round of bidding for Citi unit - Nikkei
June 16 (Reuters) - Sumitomo Mitsui Financial Group Inc (8316.T) is among at least five firms participating in the second round of bidding for Nikko Asset Management Co, a unit of Citigroup Inc (C.N), the Nikkei business daily reported without citing sources.
Last month, SMFG, Japan's third-largest bank, agreed to buy Citigroup's Japanese broker and key investment banking units for $5.9 billion. The transaction did not include Nikko Asset Management. [ID:nBNG446757]
The other companies which progressed to the second round included Sumitomo Trust & Banking Co (8403.T), Mizuho Financial Group Inc (8411.T), Nomura Holdings Inc (8604.T) and T&D Holdings Inc (8795.T), the paper said.
These companies are attracted to the corporate value of Nikko Asset, which is expected to post steady profits, and some of them likely offered more than 100 billion yen ($1 billion) for it, the paper said.
Nikko Asset, one of Japan's top asset management firms, had about 9 trillion yen in assets under management at the end of March. But Citigroup began steps to sell the unit this spring as part of its efforts to rebuild, the paper said.
If the process goes smoothly, Citigroup could pick a buyer as early as this month, the business daily said.
($1=98.25 Yen) (Reporting by Supantha Mukherjee in Bangalore; Editing by Anne Pallivathuckal)
