Details of the settlement between the two major banks weren't immediately available. An official at Mitsubishi UFJ Financial Group, speaking on condition of anonymity, confirmed a settlement was reached.

Sumitomo Trust & Banking Co. had been squabbling with the former UFJ Holdings for scuttling a planned alliance and merging with another banking company.

The two had agreed on a broad tie-up under which Sumitomo Trust would take over UFJ's trust banking operations.

But UFJ scrapped that agreement and merged last year with Mitsubishi Tokyo Financial Group Inc. to form Mitsubishi UFJ Financial Group, Japan's biggest bank by assets and market capitalization.

Sumitomo Trust had sought a court injunction to halt the negotiations between UFJ and Mitsubishi Tokyo last year, saying that violated their earlier agreement. The Supreme Court ruled in favor of UFJ.

In February, Sumitomo Trust filed a damage lawsuit in the Tokyo District Court demanding ¥100 billion in compensation.

The Japan Times Weekly: Nov. 25, 2006
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