Japanese Trust Bank Sues to Block Merger Creating World's Largest Bank

TOKYO – A Japanese trust bank on Thursday sued UFJ Holdings Inc., one of the nation’s top four banks, to block its planned merger with Mitsubishi Tokyo Financial Group Inc., a move that would create the world’s largest bank.

Sumitomo Trust & Banking Co. filed the lawsuit in Tokyo District Court against UFJ Holdings and its banking and trust banking units, demanding the merger be stopped, Sumitomo Trust spokesman Kazutaka Ogata said.

The lawsuit also asserts that an agreement that UFJ had to sell its trust banking operations to Sumitomo Trust is legally binding, Ogata said. UFJ ditched the agreement when it announced in August that it would merge with Mitsubishi Tokyo by October 2005.

UFJ had no immediate comment Thursday, saying it had yet to see the details of the lawsuit.

UFJ has another merger suitor, Sumitomo Mitsui Financial Group, which has repeatedly said its offer — which remains open until next June — is more attractive for UFJ shareholders. Sumitomo Trust is part of the Sumitomo Group.

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