TOKYO, Sept 4 (Reuters) - A surge in foreign takeover

bids for Japanese firms is likely to accelerate, with a focus on

those undergoing significant change in management, said Bank of

America's ( BAC ) co-head of Japan investment banking, Yuta

Komori.

The acquisition binge has coincided with increasing appetite

for growth among Japanese companies and declining resistance to

partnering foreign firms, Komori said in a Sept. 3 interview

about market trends, not BofA's business strategy.

WHY IT'S IMPORTANT

The increasing number of takeover bids reflects regulatory

effort to improve corporate governance, including new guidance

on how executives should respond to bids. It also reflects the

rising appeal of Japanese firms kindled by a weak yen and the

unwinding of cross-shareholding arrangements.

KEY QUOTES

Bidding "activity is becoming more active regardless of

sector. It's only going to increase from here."

"Just as there are options to bolster one's business

domestically or to go overseas and strengthen it, there are

naturally options to improve corporate value by partnering with

foreign companies."

"The Japanese capital market is the most dynamic market in

the world right now."

CONTEXT

Canada's Alimentation Couche-Tard ( ANCTF ) on Aug. 19 said

it had approached 7-Eleven convenience store operator Seven & i ( SVNDF )

about a potential takeover, in what would be the

largest-ever foreign buyout of a Japanese company.

Other large bids of late include Blackstone's offer

to take private digital comic distributor Infocom ( IFFOF ) and

Carlyle's acquisition of KFC Holdings Japan ( KFCKF ).

BY THE NUMBERS

Foreign acquisitions of Japanese companies doubled to 902.2

billion yen ($6.20 billion) in the first half of the year

compared with the same period last year, LSEG data showed.

($1 = 145.4200 yen)