Aeon may sell new shares to raise $840 mln - paper

TOKYO, Oct 7 (Reuters) Aeon Co. , Japan's second-biggest retail conglomerate, may raise more than 100 billion yen (0 million), mostly through an issue of new shares, the Yomiuri daily reported on Saturday.

Aeon plans to use up to 40 billion yen of the funds raised to acquire maximum 20 percent of smaller retailer Daiei Inc. and up to 30 percent of Daiei's supermarket subsidiary, Maruetsu Inc. , the paper said.

Aeon spokesman Kouji Tsusue said he did not know whether the company was considering issuing new shares.

Aeon would also use proceeds to open new stores and remodel existing ones, the paper said.

Daiei's top shareholder, Marubeni Corp. plans to choose by the end of this month a partner to rebuild Daiei.

The trading house plans to sell part of its 44.6 percent stake to the partner, and Aeon is widely expected to win that position over Wal-Mart Stores Inc. .

REUTERS DKS RAI0718