Daiei review
to wrap up
by year’s end

Japan's bailout agency may select a buyer for Daiei Inc., a retailer with about $9.1 billion of debt, as early as January, a senior official said.

Daiei, based in Kobe, last week applied for aid from the Industrial Revitalization Corporation of Japan, bowing to demands from UFJ Holdings Inc. and other creditors after failing to win support for its own plan. The agency plans to finish its financial review of Daiei by the end of the year, Shinjiro Takagi, chairman of a committee that oversees companies applying for support, in an interview at its headquarters in Tokyo yesterday.

Wal-Mart Stores Inc., the world's biggest retailer, Deutsche Bank AG, Ripplewood Holdings LLC, were among investors that were working on a private solution to revive Daiei, which had 1.04 trillion yen of debt in September.

"If there are several bidders, we'll evaluate their strategies, the corporate value they suggest and how serious they are interested," said Takagi.

Daiei, which was founded in 1957 and has 266 supermarkets and general-merchandise stores, is relying on its banks to remain afloat. The agency earlier set up a team of 250 people to analyze Daiei's finances.

IRCJ's Committee will treat domestic and overseas bidders equally in the process of selecting a sponsor for Daiei and there's a possibility there are more potential candidates than the company suggested, said Takagi.