Mitsubishi Tokyo Financial Group Inc. said Friday it has injected 700 billion yen into UFJ Bank, two weeks ahead of schedule, apparently to block a hostile takeover bid for UFJ Holdings Inc. by Sumitomo Mitsui Financial Group Inc.
The move puts MTFG a step closer to its planned merger by October 2005 with struggling UFJ Holdings.
"The early injection is expected to play a big role in countering a hostile bid by Sumitomo Mitsui," said Nozomu Kunishige, a bank analyst at BNP Paribas Securities (Japan) Ltd.