SoftBank’s financing talks for WeWork stalled

SoftBank Group Corp’s talks to secure $3 billion from Japan’s three biggest banks have stalled as the lenders have hit internal lending limits to the firm, two people said, complicating a $9.5 billion rescue package for WeWork.

The Japanese technology conglomerate is now likely to enter the new year without the WeWork financing in place, the sources said, adding the banks are also concerned about the risks involved in rescuing the US office-sharing startup. Mizuho Financial Group Inc, Mitsubishi UFJ Financial Group Inc (MUFG) and Sumitomo Mitsui Financial Group Inc (SMFG) are seeking ways to provide the financing while offsetting exposure, the sources said.