Japan's KDDI move to improve its growth prospects by buying [1] a big stake in Jupiter Telecom (J:Com) has hit a speed bump as news broke that financial regulators are looking into whether its plan is legal.
If regulators find there has been any wrongdoing, KDDI may have to pay an $884 million fine. Since KDDI's pending acquisition would make it the largest shareholder in J:COM, it's required to make a public offer for the shares and get shareholder approval.
This latest development comes only weeks after KDDI put a $4 billion bid on the table to acquire a 38 percent stake in J:COM from Liberty Global. KDDI's impending purchase of a large stake in J:COM is obviously strategic for two reasons: not only would it enable them to reach 3.2 million residential subscriber homes, but have access to another fiber network besides incumbent provider NTT.
For more:
- Telegeography has this article [2]
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[6]Hardware Corner: ATCA goes wireless [7] [3]
Links:
[1] http://www.fiercetelecom.com/story/kddi-hopes-revive-growth-j-com-purchase/2010-01-25?utm_medium=rss&utm_source=rss&cmp-id=OTC-RSS-FT0
[2] http://www.telegeography.com/cu/article.php?article_id=31923&email=html
[3] http://www.fiercetelecom.com/story/kddi-hopes-revive-growth-j-com-purchase/2010-01-25
[4] http://www.fiercetelecom.com/../../story/kddi-america-builds-u-s-ethernet-hubs/2009-05-26
[5] http://www.fiercetelecom.com/../../story/reliance-puts-undersea-flag-network-yipes-assets-sale/2009-12-14
[6] http://www.fiercetelecom.com/../../story/carrier-ethernet-showing-double-digit-growth-despite-economy/2009-05-04
[7] http://www.fiercetelecom.com/../../story/hardware-corner-atca-goes-wireless/2008-12-03