("2nd UPDATE: Bain Gets Bid Rights For Bellsystem24 - Source," at 2323 GMT on Nov. 4, misstated the Nikko Principal Investments acquisition details in the fourth paragraph. The correct version follows:)
By Tor Ching Li
Of DOW JONES NEWSWIRES
TOKYO -(Dow Jones)- Bain Capital has clinched exclusive bidding rights with Citigroup Inc. (C) to buy its Japanese telemarketer, Bellsystem24 Inc. (9614-TO), in a deal that could fetch more than $1 billion, a person familiar with the situation said Wednesday.
The U.S.-based private equity firm will retain the exclusive negotiating rights until Nov. 11, the person added. A spokeswoman for Bain Capital declined comment.
The final round of bidding for Bellsystem24--which involved Permira Advisors and a consortium comprising CVC Capital and Blackstone Group--ended last Friday.
The asset sale is being conducted by Citigroup's Japan private equity arm, formerly called Nikko Principal Investments, which completed the acquisition of Bellsystem24 from IT services firm CSK Corp in 2004. The purchase valued Bellsystem24 at around Y151 billion.
Citigroup has raised about $8.9 billion from asset sales in Japan in the past few months, as the U.S. financial-services giant seeks to bolster its capital base.
Goldman Sachs Group Inc.'s Goldman Sachs Japan Ltd. and Citigroup's investment-banking arm in Japan, Nikko Citigroup are handling the sale. Permira is being advised by J.P. Morgan Securities Japan Co. and Bain by UBS AG.
-By Tor Ching Li, Dow Jones Newswires; 813-6895-7565, chingli.tor@dowjones.com