KDDI Corp, Japan's second-largest telecom firm, hopes to raise its stake in Japanese cable TV network Jupiter Telecommunications and make it a subsidiary, chief executive Tadashi Onodera told Reuters on July 13.
KDDI limited its voting stake in Jupiter Telecommunications, known as J:Com, to about 31 percent after regulators questioned a January proposal to buy US group Liberty Global's 37.8 percent holding in the company.
"Ultimately, it is a matter of course for us to try to make it part of our group," Onodera said.
KDDI bought into J:Com, a so-called triple play provider of high-speed internet access, television and telephone services, to bolster its loss-making fixed-line business, but many investors criticised the $4 billion deal as too pricey. Onodera ruled out the possibility of a hostile takeover bid, saying any increase in KDDI's investment would be based on agreement with J:Com and Sumitomo Corp, which owns about 40 percent of the company.
"We are not holding talks with Sumitomo Corp, but our intentions have been fully conveyed to them," Onodera said. "My wanting to do this is not the same as being able to do it," he added.
KDDI, which admits it was caught napping when the smartphone trend took off, plans to launch its third smartphone by the end of 2010 as it battles for market share with former monopoly Nippon Telegraph and Telephone Corp and upstart Softbank Corp, supplier of Apple Inc's iPhone in Japan.
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