The big sell-off in Japanese cross-shareholdings has begun and brokers are vying for a share of the billions of dollars in fees at stake.
Nomura Holdings offers clients tailored ways to sell such stocks, while Daiwa Securities Group has added experts in block trades to a team that manages relationships with corporate clients. Bank of America is leaning on its network of global clients to help companies sell their holdings, and Mitsubishi UFJ Morgan Stanley Securities is hiring for equity financing staff.
Pressure from the government and investors to improve corporate governance is prompting companies to cut back on the estimated ยฅ50 trillion ($320 billion) they hold in the companies they do business with. More than 1,000 listed companies in Japan have recently pledged to reduce such stakes, including major companies such as Toyota Motor. For brokerages that handle the transactions, which include secondary offerings and block trades, the cost could be as much as $2 billion to $5 billion, according to Bloomberg Intelligence analyst Hideyasu Ban.
