Urban Corp. Rises on Speculation Merrill May

Japan’s biggest corporate collapse this year rose in Tokyo trading as speculations for bidders includes overseas investors like Merrill Lynch & Co.

Urban Corp, the real estate developer filed for bankruptcy this year. It was a big blow on Japan’s real estate industry.

The stock has lost almost all of its value this year, but this time it became the most traded company on the exchange with volume of 108 millions shares. Urban gained 2yen to 5yen on the Tokyo Stock Exchange.

Bids from overseas investors

Two officials said yesterday that Merrill and other overseas financial firms will bid to acquire Urban. More than 10 potential investors, including US, Europe and Japan’s real estate developers have asked to be included in the bidding process.

Urban with a debt of 255.8 billion yen or $2.4 billion last Aug.13 filed for bankruptcy. It was the largest bankruptcy listed among Japanese companies this year. As of June 30, Urban still owns more than 477 billion yen of assets including properties throughout Japan, according to a statement issued by the Tokyo Stock Exchange.

The Tokyo District Court started Urban's restructuring process on Aug. 18 and will select a buyer by November, Urban said in a statement this week. The Hiroshima, western Japan-based company named Deutsche Bank AG's Japanese unit as the financial adviser for the bidding process yesterday.