JAPAN: US bank said to be investing 25% more in Mitsubishi rescue
JP Morgan Chase will invest 25 billion yen ($US233 million) more than originally planned in troubled Mitsubishi Motors Corp., raising the total value of a rescue package to 500 billion yen, a local newspaper said on Monday, according to Reuters.
Mitsubishi Motors reportedly said in May it had secured a $4 billion bailout under which the US bank would buy 100 billion yen of preferred shares that come without voting rights while Phoenix Capital, a Tokyo-based investment fund, would acquire between 70-100 billion yen in common stock.
According to the news agency, the Yomiuri Shimbun newspaper reported in its Monday evening edition that the US bank now looked set to buy 125 billion yen of preferred shares, 25% more than expected, while Phoenix Capital was poised to purchase 75 billion yen in common stock.
The paper said if JP Morgan and Phoenix Capital invested 125 billion yen and 75 billion yen respectively, the total value of the rescue package would reach nearly 500 billion yen, about 50 billion yen more than originally planned, Reuters noted.