(by Sh. Nakata)

UFJ, Japan fourth-biggest bank, suffer losses accounting for 780 billion yen ($7.1 billion) for the six months to September.

To cope with its bad loans, it will receive an injection of as much as $6.4 billion from its probable merge partner MTFG.

Sumitomo Mitsui, Japan third-biggest bank, offers a counter-bid to the bank that accounts of $31 billion. Three outside directors of UFJ are thinking for it, people say.

Earlier this year, it forecast loan loss charges of 210 billion yen for the first half of the financial year with the profit of 120 billion yen, but now it says the charges could reach 865 billion yen.

For the time being, it accelerates its efforts, selling a stake in one borrower - Aplus - and arranging a capital infusion for another.