DealZone

Japanese banks Aozora and Shinsei, both loss-making lenders backed by U.S. investors, are in talks to merge to create Japan’s sixth-largest bank.

A deal would give Aozora access to Shinsei’s retail deposits to ease its funding needs and could provide Shinsei with a much-needed boost to capital.

It could also signal that banks around the world will seek deals as they emerge from the financial crisis.

The following are other deals reported by Reuters and other media on Thursday:

U.S. automaker General Motors has invited several investors to hand in improved offers for its European operations to try to put the screws on frontrunner Magna, the Financial Times said. China’s BAIC aims to hand in an improved offer, the paper said, citing people briefed on the matter.

Telecom Italia is ready to sell its stake in Telecom Argentina if the price is right, Italian newspapers reported on Thursday, quoting Chief Executive Franco Bernabe.

India’s Grasim Industries plans to absorb its unit UltraTech Cement to consolidate the group’s cement business under one arm and create India’s top cement firm, the Economic Times reported, citing an investment banker.

Indian diversified construction firm Jaiprakash Associates plans to merge two of its power units to help them sell shares worth up to 40 billion rupees ($825 million) to institutional investors, the Business Standard said.