UFJ Appeals to Shareholders to Support Merger Plans

UFJ Holdings Inc., Japan’s fourth-largest lender, appealed to shareholders to support a merger with Mitsubishi Tokyo Financial Group Inc. that would create the world’s biggest bank by assets. UFJ said it hired JPMorgan Chase & Co. and Merrill Lynch & Co. to provide financial advice.

UFJ “continues to believe that management integration with MTFG will create mid- and long-term shareholder value,” the bank said in an open letter to shareholders. The letter will be published tomorrow in the Nihon Keizai, the Financial Times and the Wall Street Journal, an accompanying statement said.

UFJ shareholders last month expressed concern that the two banks haven’t disclosed merger terms. Sumitomo Mitsui Financial Group Inc., Japan’s third-biggest bank, made a 3.2 trillion yen ($29.2 billion) hostile offer for UFJ, which reported a 402.8 billion yen loss in May.

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