By Reuters Staff (Adds background, shares halted) TOKYO, March 3 (Reuters) - A Japanese fund backed by veteran activist investor Yoshiaki Murakami cancelled its offer for energy and environment firm Japan Asia Group (JAG), after pressuring private equity firm Carlyle Group to withdraw a competing bid last month. On Wednesday, City Index Eleventh said it was withdrawing its bid after JAG refused to cooperate with its efforts to carry out due diligence and announced a large, special dividend. Murakami is one of Japan’s few, well-known activist shareholders. His typical strategy includes building up a stake in a company in the middle of a takeover and demanding that management boost its sale price.