Monday April 28, 4:09 PM
Mizuho-Shinko merger rescheduled for May next year
TOKYO (AFP) - Japanese firms Mizuho Securities and Shinko Securities said Monday they plan to merge on May 7 next year after postponing their integration twice due to financial market turmoil.
The two firms, both affiliates of Japan's Mizuho Financial Group Inc., said in a statement that they will sign a new merger accord after renegotiating the terms of the deal, including the merger ratio.
They had originally planned to tie-up in January 2008 but were forced to delay the merger due to the subprime mortgage crisis in the United States, which has inflicted heavy losses on Mizuho Securities.
The losses forced Mizuho Financial earlier this month to cut its net earnings forecast for the year to March 2008 by 35.4 percent to 310 billion yen (3.0 billion dollars) -- about half the previous year's profit of about 621 billion.
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