JAPAN FUND <JPN> TO PROPOSE CONVERSION
Japan Fund Inc said its board would
recommend at its April 23 stockholders meeting that the Fund be
converted to a no-load open-end fund.
    If approved, the Fund said a redemption fee of one pct of
net asset value will be imposed on redemptions for a period of
time not to exceed six months after open-ending.
    It said such a redemption fee is designed to cover
trasaction costs related to early redemptions and will remain
in the assets of the Fund.
    It said Shearson Lehman Brothers is serving as its
financial advisor.
    In a prepared statement, Jonathan Mason, Japan Fund's
chairman, said "open-ending, which is timely, given the
expansion of the Japanese stock markets, particularly in the
last few years, will eliminate the discount from net asset
value and will afford investors the continuing opportunity for
investment in Japan through the Japan Fund."
    Japan Fund said it proposed the conversion to an open-end
fund after rejecting a takeover offer of about 525 mln dlrs
from an investment group led by T. Boone Pickens III, son of
the Texas oilman.
    The investor group, whose other members include <Sterling
Grace Capital Fund LP> and <Anglo American Security Fund LP>,
could not be reached tonight for comment.
    When it made its takeover offer on March 3, the group said
it owned 1.4 mln shares, or about 4.9 pct, of the fund's
outstanding stock.
    Asked to comment on the rejection of the investor group's
offer, a Japan Fund spokeswoman said, "The board decided that
an open-end fund was preferable."
    The spokeswoman, Davia B. Temin, said no other comments
would be made on the offer.
    She also declined to provide details on other options Japan
Fund said previously that it would consider along with the
takeover bid.
 Reuter
