* LY, Bain offering 3,232 yen per share

* EQT is offering 3,000 yen per share in tender offer

launched this week

* EQT says confident in the attractiveness of its offer

(Writes through, adds EQT response)

TOKYO, May 14 (Reuters) - SoftBank's LY Corp ( YAHOF )

said on Thursday it and Bain Capital have lifted their bid for

Kakaku.com ( KKKUF ), valuing the price comparison website

operator at $4 billion and above a rival offer from Swedish

investment firm EQT.

Describing Kakaku's businesses as having "extremely high

strategic value" given the rise of generative artificial

intelligence, LY, which owns the Line messaging app and Yahoo

Japan, said they were now offering 3,232 yen per share in an

all-cash deal.

That is 7.7% higher than their earlier bid of 3,000 yen per

share.

A tender offer launched on Wednesday by EQT that aims to

take the business private and which has the unanimous backing of

Kakaku's board also values the company at 3,000 yen per share.

EQT said it remains confident in the attractiveness of its

live, legally binding offer.

It believes it would bring "execution certainty, relevant

sector expertise and a long-term perspective to support the

company's next phase of growth," a spokesperson told Reuters.

Kakaku, which operates price comparison site Kakaku.com ( KKKUF ),

restaurant review and reservation platform Tabelog and job

search service Kyujin Box, did not respond to a request for

comment.

SHARES SUGGEST BIDDING WAR MIGHT CONTINUE

Shares in Kakaku rose 0.7% to 3,450 yen in afternoon trade,

indicating that some investors expect the bidding war could run

further.

Shares in LY, which is part of the SoftBank tech

investment conglomerate, were down 2.2%.

Japanese companies have increasingly become targets for

overseas investors as governance reforms encourage firms to

rethink their capital structure and become more open to going

private.

Last year, in what was considered a milestone for M&A in

Japan, two global private equity firms battled to take over

software developer Fuji Soft, with KKR

ultimately winning out over Bain.

While the government is encouraging M&A activity,

authorities are also increasing scrutiny of deals amid concern

about the targeting of firms by activist investors and foreign

acquirers.

Companies are not obliged to accept unsolicited takeover

bids even when offered large premiums, a government official

said in February.

Digital Garage ( DLGEF ) and KDDI ( KDDIF ), which together

hold 38.1% of Kakaku, agreed to sell their shares in the EQT

tender offer. KDDI ( KDDIF ) declined to comment. Digital Garage ( DLGEF ) did not

respond to a request for comment.