The Murakami-linked City Index Eleventh fund has been steadily increasing its ownership in Shinsei. The fund along with S-Grant Corp and other investors now hold 9.16% from 8.14% previously, according to a regulatory filing on Tuesday.

Shinsei said last month it would cancel plans to introduce a poison pill defence aimed to block the takeover bid from online financial conglomerate SBI Holdings.

(Reporting by Rocky Swift in Tokyo; Editing by Tom Hogue)