Japan's Desperate Deals

They're just the prelude to even greater upheaval

Old Japan hands thought they would never see such deals in the closed world of Japanese finance and business. U.S. financial giant General Electric Capital Services Inc. pulls off a $6.5 billion takeover of Japan's biggest leasing company in the country's largest foreign acquisition ever. Goodyear Tire & Rubber Co. suddenly emerges as Sumitomo Rubber Industries' white knight. Keiretsu group relationships fall apart as Japanese banks and brokers engage in a bewildering array of novel mergers and tie-ups. The financial-reconstruction czar, Hakuo Yanagisawa, forces a shotgun marriage between Mitsui Trust & Banking and rival Chuo Trust & Banking.

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