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Vodafone plans to increase its stake in Japan Telecom

Britain's mobile phone giant Vodafone Group Plc plans to raise its stake in Japan Telecom Co to 66.7 percent from the current 45 percent through a takeover bid this month, a daily said yesterday.

Vodafone -- the world's largest mobile phone operator -- will invest about ?220 billion (US1.9 billion) to buy shares in Japan's number three telecommunications, targeting all shareholders, the Keizai Shimbun said.

East Japan Railway Co, the second-largest shareholder in Japan Telecom, is expected to agree to sell 10 percent of its 15.1 percent stake to Vodafone, the business daily said.

Vodafone plans to announce the takeover bid today.

Under the plan, Vodafone is expected to buy Japan Telecom shares at a 10 percent premium per share on the market price. The company will halt purchasing once it secures the desired stake.

The UK company has already called on Japanese regulators, investment banks and other concerned parties to cooperate. The firm estimates that the move will take about one month to complete.

By taking a 66.7 percent stake in Japan's third largest telecommunications company, Vodafone aims to decide Japan Telecom's management strategy independently, the Nihon Keizai said.
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