Wal-Mart keeps
eye on Daiei

Wal-Mart Stores Inc., the world's largest retailer, said it is in contact with the state-run bailout agency that may help revive Daiei Inc., Japan's No. 3 retailer.

"We're always in contact with appropriate people from the IRCJ," said Jeff McAllister, Wal-Mart International's Tokyo-based chief executive officer, when asked about possibly helping Daiei.

The Industrial Revitalization Corporation of Japan is reviewing Kobe-based Daiei for possible state aid and has said it may select outside buyers when it finishes looking at Daiei's assets.

Wal-Mart hired banks in August to advise it on possibly investing in Daiei, which is trying to cut about $9.5 billion in debt. Rivals Aeon Co. and Ito-Yokado Co., Japan's first and second biggest retailers, may also compete for some of Daiei's 63 supermarkets and 182 general merchandise stores.

Seiyu Ltd., already 37 percent-owned by Wal-Mart, remains the focus of Japan operations for Wal-Mart, McAllister said at a Seiyu store opening in Saitama, near Tokyo.

"We'll consider opportunities to expand" McAllister said.