UPDATE 1-Sharp $3 bln overhaul plan could be concluded this week- source

Mon Jan 11, 2016 10:07pm EST
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* 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 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 and Mizuho Financial Group Inc, 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.   Continued...