Japan fund fighting for Sharp in takeover tussle

TOKYO • Innovation Network Corp of Japan is making the case to Sharp Corp that its rescue proposal for the electronics maker is worth more than an offer from Foxconn Technology Group, a sign the government fund is determined to keep fighting for victory in the takeover battle.

The state-backed fund proposed a package of cash, asset sales and support from lenders that it says is worth one trillion yen (S$11.4 billion), according to documents INCJ presented to Sharp. Foxconn is offering about 660 billion yen for the company.

INCJ's proposal included a 300 billion yen cash infusion for Sharp as well as 350 billion yen in support from its lenders, according to the documents.

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Manila merging two big state-owned banks

MANILA • The Philippine government announced plans to combine the country's two largest state-owned banks at the same time as it injected at least 30 billion pesos (S$893 million) of new capital into the merged entity yesterday.

Development Bank of the Philippines will be merged into Land Bank of the Philippines to create the country's second-biggest lender by assets, eclipsing Metropolitan Bank of the Philippines and Bank of the Philippine Islands, based on central bank data as of end-September. The merger needs the approval of Bangko Sentral ng Pilipinas.

The Philippines' biggest banks must boost capital by at least four times current levels by 2019, to protect against growing risks and competition from foreign lenders, according to the central bank.

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