After closing in the US at $830, we appear to be headed towards a 5000 yen limit down night in Tokyo. That would leave Softbank at $782 US equivalent at the close in Tokyo (assuming it stays down the limit). That's a 22% retracement from the recent high at the end of 1999. I think that was around $1001. There doesn't seem to be any particularly negative news specific to Softbank. I did see these two stories on Bloomberg that I will just post without comment:
Softbank to Sell 8.4 Bln Yen in Warrant Bonds as Incentive Plan
Tokyo, Jan. 6 (Bloomberg) -- Softbank Corp., a Japanese
internet, software and finance investor, yesterday said it will
issue 8.4 billion yen ($80.7 million) of No. 5 warrant bonds
in order to offer the warrants, which are options to buy company
stock at a set price, to qualified directors and employees of
Softbank and its subsidiaries in an incentive plan.
The unsecured warrant bonds, all to be underwritten by
Nomura Securities, will be offered from Jan. 28 in Japan. The
payment date is Feb. 9. The bonds will mature at par value on
Feb. 9, 2004. The bonds have a face value of 100 million yen.
Interest will be paid semiannually on the 9th of February and
August.
Under the incentive plan, eligible directors will receive
warrants as part of the incentive plan and employees will be
given rights to purchase the bonds. Warrants can be exercised
for Softbank's stock from Feb. 8, 2002 through Feb. 6, 2004.
More details will be determined at the company's board of
directors meeting to be held on Jan. 20.
Softbank fell as much as 2,200 yen to 84,400.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.
* * * * * *
Yahoo Japan Plans 28-Share, $25 Million Stock Option Plan
Yahoo Japan Plans 28-Share, $25 Million Stock Option Plan
Tokyo, Jan. 5 (Bloomberg) -- Yahoo Japan Corp. said it will
set up a stock option plan giving 20 employees the right to buy
a combined 28 shares, worth a total of about $25 million at
today's closing price.
It's the company's fourth stock option plan, and is focused
on rewarding the performance of employees who have contributed
to Yahoo's growth, said company spokesman Eiichi Tsunoda.
``This will give employees a feeling of partnership, and
partners should share their wealth,' Tsunoda said. ``We will
offer the option based on the employees' ability, no matter what
their titles are.'
The options give the owners the right to buy shares during
the period from Jan. 22, 2002, through Jan. 21, 2010, at either
the closing price on Jan. 22 this year, or the average of the
closing prices in December, whichever is higher.
``There is no risk for the option holders, because they can
choose not to exercise the option,' Tsunoda said.
Yahoo Japan shares today fell 2 million yen to close at
91.4 million yen ($887,000), retreating from a record high
yesterday.
The stock option plan is conditional on approval at a
shareholders' meeting on Jan. 21. Softbank Corp., one of Japan's
largest investors in Internet ventures, owns 51 percent of the
company.
``Of course, those (selected) employees should be very
happy,' said Juliette Chow, an Internet analyst at Lehman
Brothers (Asia) Ltd. in Hong Kong, who rates the shares a
``buy.' ``Those employees should have more incentive to work
harder.'
Chow said the shares should continue to rise because Yahoo
Japan is ``the leading company in the Japanese Internet
business' and has the support of Softbank and Yahoo Inc.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min. |
