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Japan Telecom Talks With U.S. Group

Posted on: Wednesday, 5 February 2003, 06:00 CST

Source: Associated Press

Japan Telecom Holdings Co., a Tokyo-based unit of British telecom Vodafone Group PLC, said Wednesday it is in talks with U.S. investment company Ripplewood Holdings to sell its fixed-line operations.

The statement from Japan Telecom follows a report Wednesday in Japan's top business daily Nihon Keizai Shimbun that a 300 billion yen ($2.5 billion) deal with Ripplewood could be announced as soon as next month.

Ripplewood Holdings' Tokyo office refused to comment. Japan Telecom said no decision had been made and Ripplewood was among several potential buyers.

Speculation has been widespread that Vodafone, which owns 66.7 percent of Japan Telecom, will likely sell its money-losing fixed-line business to focus on Japan Telecom's cell phone unit called J-Phone.

J-Phone has been doing relatively well here, but it still needs capital if it hopes to catch up with NTT DoCoMo, which controls 60 percent of Japan's mobile phone market.

Ripplewood owns a controlling share of a collapsed Japanese bank now called Shinsei Bank. It has also invested in music company Nippon Columbia, auto-parts maker Niles Parts Co. and the Seagaia resort in southwestern Japan.

Tim Collins, chief executive of New York-based Ripplewood, told The Associated Press in December that he was looking into several new deals in Japan for 2003.

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Copyright © 2003 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.

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