Bankers Trust, Tokyo bank ties grow Nippon Credit, N.Y. firm to purchase $10 million of each other's shares


October 01, 1997|By BLOOMBERG NEWS

NEW YORK -- Bankers Trust New York Corp. and Nippon Credit Bank Ltd. have agreed to purchase about $10 million of each other's shares, the most recent step in the companies' developing relationship.

Bankers Trust has been helping Nippon Credit Bank, including selling $2.2 billion in loans to American companies, as the Japanese bank attempts to recover from $9.9 billion in uncollectible loans.

Tokyo-based Nippon Credit Bank and New York-based Bankers Trust said the companies will buy the shares after Nippon Credit Bank has completed restructuring its capital.

Bankers Trust also agreed to buy a call warrant, which gives the bank the right to purchase $125 million in Nippon shares in three years.

"From Bankers Trust's perspective, it's part of facilitating the relationship," said David Berry, a bank analyst at Keefe, Bruyette & Woods.

"From Nippon's perspective, it makes them feel like they have a more committed partner," Berry said.

In June, Bankers Trust purchased some of the assets of Crown Leasing Corp. for $646 million. Tokyo-based Crown Leasing was the financing affiliate of Nippon Credit Bank before a Tokyo court declared the unit bankrupt on April 7.

Analysts said the share purchase by Bankers Trust won't affect its earnings.

"It's more nominal than material," Berry said.

As part of the share-purchasing agreement reached yesterday, Nippon Credit and Bankers Trust said they would continue to strengthen their relationship, particularly in asset securitization, international business and investment banking.

Nippon Credit Bank shares rose 7 yen, or 4 percent, to 182 in Tokyo trading yesterday. Bankers Trust shares closed up 12.5 cents $122.375 in U.S. trading.

Pub Date: 10/01/97

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