KDDI's J:COM purchase comes under regulatory scrutiny

Japan's KDDI move to improve its growth prospects by buying 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

Related articles
KDDI hopes to revive growth with J:Com purchase
KDDI America builds U.S. Ethernet hubs
Reliance rumored to be selling FLAG and Yipes assets
Carrier Ethernet services have continued to show strong growth
Hardware Corner: ATCA goes wireless

Suggested Articles

icrosoft took the wraps off of a new cloud service for Azure via its partnership with Genesys.

Ahead of next month's fourth quarter earnings, Windstream touted its 2019 broadband achievements this week.

Cincinnati Bell announced on Friday that it has received an unsolicited buyout bid from an "infrastructure fund" for $12 a share in cash.