TOKYO/HONG KONG, Oct 17 (Reuters) - Fuji Soft

founder and shareholder Hiroshi Nozawa said in a letter to the

company, seen by Reuters, that he supports U.S. buyout fund Bain

Capital's takeover bid for the Japanese software developer.

Bain made a binding offer on Oct. 11 to buy Fuji Soft for

9,450 yen a share, valuing the Japanese company at $4 billion

and outbidding rival bidder KKR by about 7%.

Fuji Soft, however, said in a Oct. 15 filing that there were

no discussions between the company and Bain Capital regarding

the terms of its tender offer. Its board has recommended that

shareholders accept KKR's tender offer of 8,800 yen a share.

Nozawa, in the letter on Thursday to the company's board and

special committee on the bids, urged Fuji Soft to withdraw its

recommendation for KKR's buyout offer, stating Bain's offer was

better.

"It is obvious that Bain Capital's purchase price, which is

higher than KKR's purchase price, is in the common interest of

shareholders," Nozawa said in the letter.

Shares in Fuji Soft closed at 9,630 yen on Thursday, above

both of the offer prices.

KKR and Fuji Soft declined to comment on the founder's

letters. Bain Capital told Reuters it would continue to support

Fuji Soft by acting as a "white knight" to the management and

founder.

Bain and KKR have become rivals in a rare showdown to take

over the Yokohama-based informational technology group, which

has been at odds with some of its major shareholders.

KKR has said it has secured backing for its bid from Fuji

Soft's major shareholders 3D Investment Partners (3DIP) and

Farallon Capital. Combined, the two have tendered 32.68% of Fuji

Soft shares to KKR, according to the buyout firm's announcements

last month.

Nozawa, who together with family members own an 18.5% stake

in Fuji Soft, sent a separate letter to the media on Thursday

which said: "We hope that 3DIP, Farallon, and other major

shareholders will accept Bain Capital's tender offer and support

us in quickly establishing a framework for future efforts to

increase corporate value."

The Nikkei business daily first reported on Nozawa's letter

to the company.

KKR last month brought forward the start of its tender offer

by about a week and said it would conduct the tender offer in

two stages.

Bain has said it would launch its tender offer process in

late October and the offer would be conditional on the board's

affirmative opinion.