After its initial bid to acquire a big piece in Jupiter Telecommunications (J:COM) prompted regulatory inquiries, KDDI is considering buying a smaller stake in the company. Under the new plan, KDDI will purchase less than one-third versus the initial 38 percent piece it had planned to acquire.
At the time that KDDI put its original acquisition plan on the table--one that it believes will enhance its holdings with a large fixed line telephony business and a large fiber network--it was equal to a premium of 44 percent of Jupiter's closing price. Not long after KDDI crafted the original deal, financial regulators were going to levy an $884 million fine on KDDI. Regulators argued that because the deal would immediately establish KDDI as J:COM's largest shareholder, it would be required to make a public tender offer for the shares and get shareholder approval for the deal.
- Telecompaper has this article
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