TOKYO, Nov 9 (Reuters) Japan's Mizuho Securities, the brokerage of Mizuho Financial Group <8411.T>, may have suffered up to 100 billion yen (0 million) in subprime losses, which could delay its planned merger with Shinko Securities Co Ltd <8606.T> by several months, the Nikkei newspaper said on Friday.
The report comes after Mizuho Financial, Japan's second-largest bank, said on Monday it may need to change the merger ratio for the two brokerages, as unlisted Mizuho Securities posted a first-half loss on subprime investments.
Mizuho Securities and Shinko, which is about 15 percent owned by Mizuho Financial, are due to merge in January, a deal that would create Tokyo's third-largest brokerage by revenue and the fourth largest by assets under management.
But subprime losses of up to 100 billion yen at Mizuho Securities may delay the deal until June 2008 or later, the Nikkei said.
Masako Shiono, a spokeswoman for Mizuho Financial, declined to comment on the report.
Mizuho Securities last month posted a first-half loss of 32.5 billion yen, after the subprime crisis forced it to write down the value of debt products held by an overseas affiliate.
Shares of Mizuho Financial Group ended down 5.7 percent at 531,000 yen while Shinko lost 5.5 percent to 519 yen.
Tokyo's TOPIX index <.TOPX> ended down 1.5 percent.
REUTERS BJR GC1214