Nasdaq Writes Down $20.1 Mln in Japan Nasdaq; Softbank Declines
Nasdaq Writes Down $20.1 Mln in Japan Nasdaq; Softbank Declines
Tokyo, Aug. 8 (Bloomberg) -- Nasdaq Stock Market Inc. said it
will write down $20.1 million in pretax costs related to Nasdaq
Japan Inc. because its investment in the exchange for smaller
companies will probably not produce a profit.
Nasdaq and shareholders of Nasdaq Japan will review
strategies for the Japanese exchange this month, said Ross
Rowbury, a spokesman for Nasdaq in Tokyo.
Nasdaq and Softbank Corp., Japan's biggest investor in
Internet companies, each own 43 percent of Nasdaq Japan. Softbank
shares today fell as much as 141 yen, or 11 percent, to 1,091 and
closed at 1,117, down 115 yen.
Nasdaq Japan has 95 companies, less than half its target when
it started in June 2000. The shortfall has limited its revenue
from listing fees and trading, resulting in a loss of 2.8 billion
yen ($23.2 million) last year.
New York-based Nasdaq said it will write down $15.2 million
in investments in Nasdaq Japan and $4.9 million in development
costs related to a new trading platform.
``We concluded that our investment in Nasdaq Japan will not
return value in the foreseeable future,'' Nasdaq Chairman and
Chief Executive Hardwick Simmons said in a press release.
Nasdaq Japan competes against Jasdaq and the Tokyo Stock
Exchange's ``Mothers'' board to attract smaller companies. Nasdaq
last month said it is seeking a new local partner after blaming
the Osaka Securities Exchange for causing a ``substantial delay''
in the start of a trading system needed for creating a global
equities market.
A total of 13 brokerages, including Nomura Holdings Inc. and
Goldman Sachs Group Inc., own combined a 14 percent stake in
Nasdaq Japan. |
