TOKYO (Reuters) -The preferred bidder to buy out Toshiba (OTC:TOSYY) Corp, a group led by private equity firm Japan Industrial Partners (JIP), is likely to miss the deadline to secure bank loans for the deal, the Kyodo news agency reported on Wednesday.
Kyodo did not say where it got the information.
Toshiba shares fell 2% on the report, reversing earlier gains.
The JIP-led group was granted preferred bidder status by Toshiba in a second round of bidding on Oct. 7, though the conglomerate is still open to proposals from others, people familiar with the matter have said.
JIP's initial offer was below 6,000 yen per share, sources familiar with the matter have told Reuters, putting the value of a potential tender offer at less than 2.6 trillion yen ($17.55 billion).
JIP has been inviting Japanese firms including Orix (NYSE:IX) Corp and Chubu Electric Power Co Inc.
($1 = 148.1200 yen)