TOKYO, Feb 4 (Reuters) - U.S. private equity firm KKR

will raise its tender offer price for Japanese IT

company Fuji Soft to 9,850 yen a share from 9,451 yen,

above Bain Capital's rival offer of 9,600 yen, a person familiar

with the deal said on Tuesday.

The person declined to be identified because the

information is not yet public.

KKR and Bain are trying to buy Fuji Soft in competing tender

offer bids worth as much as $2 billion.

KKR now has a 34% stake in Fuji Soft after the first stage

of a two-part bid, but has failed so far to amass a majority due

to Bain's higher offer. It has repeatedly extended the tender

offer period, with the latest due to end on Friday.

Fuji Soft's shares were up 1.53% at 9,950 yen in early

afternoon trade.

Bain, which is supported by Fuji Soft's founding family,

has not launched its tender offer bid yet, having said that it

would wait for KKR's bid to fail or be withdrawn.

KKR had initially offered 8,800 yen a share for Fuji

Soft last August. Bain announced its rival offer the following

month, at 9,450 yen, prompting KKR to raise its offer to 9,451

yen. It had kept its offer price there despite Bain's re-raising

its offer to 9,600 yen.

KKR will announce the latest change as early as on Tuesday

afternoon, the Nikkei business daily reported earlier.