Japanese telecom giant Softbank is ready to walk away from plans to bailout embattled co-working giant WeWork, casting doubt on a deal that had been set to close in two weeks.

According to correspondence reported by The Wall Street Journal, the proposed agreement by the Japanese conglomerate to purchase $3 billion (A$5 billion) of shares back from existing investors is now highly unlikely.

Over recent months, SoftBank’s chief executive Masayoshi Son has been attempting to secure full control of WeWork in an effort to salvage an investment that has already cost the Japanese telecom group and its Saudi Arabia-backed Vision Fund $10.65 billion (A$17.8 billion).

In an email to shareholders, Softbank cited numerous government inquiries into WeWork, including those from U.S. attorneys, the Securities and Exchange Commission, attorneys general in California and New York and the Manhattan district attorney.