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Dow Jones Newswires -- April 10, 2000
Softbank Exec Calls For Change In Tie With Hikari Tsushin
Dow Jones Newswires
TOKYO -- Softbank Corp. (J.SFT or 9984) Chief Financial Officer Yoshitaka Kitao called for a shift in the company's friendly relationship with Hikari Tsushin Inc. (J.HKR or 9435) in an interview with a magazine which hit newsstands Monday.
In the latest issue of Weekly Toyo Keizai, Kitao said: "Various media have reported dubious points about Hikari Tsushin. As these suspicions have not cleared, (Softbank) needs to review its relationship with Hikari Tsushin, or Softbank will be placed at a (disadvantage)."
Several magazine articles recently criticized Hikari Tsushin's business tactics in its mobile phone marketing operations among other activities.
Kitao confirmed that still holds his opinion stated publicly last month in Hong Kong that Softbank should dismiss Hikari Tsushin President Yasumitsu Shigeta as Softbank's nonexecutive director.
After Kitao's statement in Hong Kong, Softbank Corp. President Masayoshi Son and Hikari Tsushin's Shigeta said separately that they confirmed over the phone that they will keep their existing relationship.
Regarding plans over the use of its stake in Nippon Credit Bank (J.NCK), Softbank is targeting a capital gain by listing the once-mighty bank back on a stock market, instead of turning it into a banking arm of Softbank, Kitao said.
Softbank plans to take an equity stake of smaller than 50.0% in NCB, while the stakes held by Softbank, Orix Corp. (IX or 8591) and Tokio Marine & Fire Insurance Co. (TKIOY or 8751) in NCB are expected to total 80.0%, a spokesman for Softbank said.
Regarding the Nihon Keizai Shimbun report late last month that Softbank will issue new shares to raise Y300 billion, Kitao said in the latest interview that Softbank wasn't considering the plan "at all."
Kitao said Softbank will consider reporting its earnings on a quarterly basis but won't be able to start quarterly disclosure "in the near term" because some of its consolidated affiliates have yet to compile earnings on a quarterly basis.
A spokesman for Softbank said that Kitao's comments in the latest interview with Weekly Toyo Keizai correspond with what the executive often says and appear to have been reported correctly.
-By Yumiko Nishitani; 813-5255-2988; yumiko.nishitani@dowjones.com |
