Analysts said the deal sets the stage for a potential shift in financial services from "old Japan" banks to innovative and more nimble newcomers, reflecting the blending of web services and banking as e-commerce intensifies.

The Softbank consortium will pay the Government one billion yen ($9.5 million) for all outstanding NCB common shares and will spend an additional 100 billion yen to bolster NCB's capital base, Japan's Financial Reconstruction Commission (FRC) said.The consortium, which will end up with 78.8 per cent of NCB, has asked the Government to contribute 260 billion yen to the reborn bank, the FRC said.

Softbank will own 48.8 per cent, while its partners, leasing firm Orix Corp and Tokio Marine & Fire Insurance Co Ltd, will each own 14.99 per cent. Softbank has said it wants to list the new NCB in three to five years.

The NCB collapsed under the weight of bad loans extended during an asset price bubble a decade ago. It was placed under state control in December 1998. Analysts had been concerned about possible hidden problem loans in NCB's portfolio. Liabilities exceeded assets by 3.24 trillion yen as of March 31, up from 3.1 trillion a year earlier. The FRC said foreign firms, including Lehman Brothers Holdings Inc and US investment group Cerberus Partners, will take a combined 12.8 per cent stake per cent in NCB, while regional financial institutions will take 7.76 .

The Cerberus involvement came as something of a surprise after it had said in early June it was withdrawing from the bidding. It lost out to Softbank in an initial round of bidding in February.

The Softbank consortium put the finishing touches to the NCB deal this month, announcing a basic agreement on June 6, a week after the Internet investor failed to meet a deadline set by the FRC to agree terms. ($1=105.15 Yen)

-- (Reuters)