September 24, 2008
Sumitomo Mitsui Mulling Investment in Goldman Sachs
Tokyo, Sept. 24 (Jiji Press)--Japan's Sumitomo Mitsui Financial Group Inc. is considering investing in U.S. investment bank Goldman Sachs Group Inc., informed sources said Wednesday.
Goldman has unofficially approached the Japanese banking group, the sources said.Sumitomo's investment is expected to surpass 100 billion yen.
Sumitomo and Goldman have already been in an alliance.
Sumitomo Bank, which is now part of Sumitomo Mitsui Banking Corp., once invested some 500 million dollars in Goldman. In 2003, Goldman bought Sumitomo Mitsui Financial Group's preferred shares worth some 150 billion yen.
The deal, if clinched, will make Sumitomo the latest of a string of Japanese financial institutions acquiring stakes in or operations of troubled U.S. financial firms.
Mitsubishi UFJ Financial Group Inc. has agreed to acquire a stake of up to 20 pct of Morgan Stanley, while Nomura Holdings Inc. has agreed to acquire failed U.S. investment bank Lehman Brothers' operations in Asia, Europe and the Middle East.END
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