* Japan state fund offers Sharp more than 200 bln yen
* Sharp seeks 150 bln yen from banks
* Latest rescue would split LCD business, merge with Japan
Display
(Adds details, context)
By Taro Fuse
TOKYO, Jan 12 (Reuters) - A $3 billion restructuring plan
for Japanese electronics firm Sharp Corp 6753.T is likely to
be finalised as early as this week, a person with direct
knowledge of the discussions said on Tuesday.
State-backed fund Innovation Network Corporation of Japan
(INCJ) is leading the bailout, which would be Sharp's third
major package in three years, and would invest more than 200
billion yen ($1.7 billion) in the plan, the source added,
confirming earlier media reports.
The Osaka-based company is also asking Bank of
Tokyo-Mitsubishi UFJ and Mizuho Bank to convert about 150
billion yen ($1.3 billion) of existing loans into preferred
shares, said the source, who declined to be named as the
discussions remained confidential.
Sharp said in a statement it is in talks with various
companies about LCD business but no decision have been reached,
while spokesmen for the banks, units of Mitsubishi UFJ Financial
Group Inc 8306.T and Mizuho Financial Group Inc 8411.T ,
declined to comment.
Sharp shares surged nearly 8 percent in early trade on
reports of the bailout but ended morning trade down 0.9 percent.
INCJ, tasked with helping to revive Japan's once-cutting
edge consumer electronics sector, would merge Sharp's
liquid-crystal display business with that of Japan Display Inc
6740.T , the source said.
INCJ is the biggest shareholder in Japan Display and a
spokesman for the company declined to comment on the matter. An
INCJ representative could not immediately be reached.
Despite a $1.7 billion rescue in May, Sharp has shown few
signs of a turnaround as it and other Japanese consumer
electronics makers struggle to compete against the likes of
Samsung Electronics Co 005930.KS and more nimble Asian rivals.
Sharp has also received an investment offer from Taiwan's
Hon Hai Precision Industry Co 2317.TW , also known as Foxconn,
people with knowledge of the matter said last month. These
sources have also cited private equity interest, and the Nikkei
business daily has named U.S. buyout fund KKR & Co KKR.N as a
potential investor.
($1 = 117.7000 yen)