Vodafone set to boost Japan Telecom stake
( 2001-05-02 15:26) (7)
Vodafone Group Plc appears set to boost its stake in Japan Telecom Co, firming up its position in the world's second-largest telecoms market while indebted rival British Telecoms prepares to bow out.
Vodafone said it would hold a news conference at 3 pm (0600 GMT) on its interest in Japan's number-three telecoms firm, in which it already holds a 25 percent stake, amid widespread expectations it soon would buy British Telecommunications Plc's 20 percent stake.
Britain's Guardian newspaper reported that Vodafone, the world's largest mobile phone group, would place three billion pounds ($4.3 billion) of new shares on Wednesday and use the proceeds mainly to increase its stakes in Japan Telecom and its mobile phone affiliate J-Phone.
Vodafone Chief Executive Chris Gent and Japan Telecom Chairman Koichi Sakata will attend the news conference.
A Vodafone spokesman in Tokyo declined to confirm media reports that the company had agreed to increase its stake in Japan Telecom.
Shares in Japan Telecom shot up in Wednesday trade after British Telecoms said it was in talks to sell its prized 20 percent stake in Japan Telecom to Vodafone.
BT is also discussing the sale of its 20 percent stake in J-Phone.
At 0422 GMT, shares in Japan Telecom were up 17.86 percent at 2.64 million yen, surging for a second consecutive session on expectations cash-rich Vodafone would bolster the Japanese company's fortunes as it prepares for a costly launch of third-generation mobile services.
The addition of BT's 20 percent stake would boost Vodafone's holdings in Japan Telecom to nearly half and put it within striking distance of majority control of J-Phone, the Japanese company's crown jewel. Vodafone already holds direct stakes in the mobile operator and its regional units.
A deal would mark Vodafone's third sizeable acquisition of Japan Telecom shares since December. It completed its latest stake purchase only this week, buying US telecoms giants AT&T Corp's 10 percent Japan Telecom stake for $1.35 billion in cash. That made it the largest stakeholder, with 25 percent.
J-Phone is owned 54 percent by Japan Telecom, 26 percent by Vodafone and 20 percent by BT.
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