Shinsei Bank on Thursday decided to reject a tender offer from major online financial group SBI Holdings Inc., raising the prospect of a rare hostile takeover bid in the Japanese financial sector.

The standoff between the firms has escalated since SBI launched an unsolicited tender offer in early September in an attempt to raise its stake from 20% to 48%.

Shinsei Bank officially decided to reject a tender offer from major online financial group SBI Holdings Inc. | KYODO
Shinsei Bank officially decided to reject a tender offer from major online financial group SBI Holdings Inc. | KYODO