FT: Kitao takes offensive on 9984's stock price
THE GUARDIAN: SOFTBANK TRIES TO REBUILD: GLOBAL DOT.COM LEADER GOES ON OFFENSIVE TO STOP DEBT DOUBTS ERODING SHARE PRICE
100% match; The Guardian - United Kingdom ; 22-Apr-2000 12:00:00 am ; 459 words
The world's biggest dot.com investment company, SoftBank, yesterday went on the offensive against the recent savaging of its share price which has destroyed its president's chances of becoming the world's richest man.
The Japanese group's chief financial officer, Yoshitaka Kitao, declared that SoftBank's stock was 'too cheap' and poured cold water on claims that its debt levels were excessive. He also pointed to the company's range of investments to highlight its earnings potential.
His comments sent SoftBank's shares surging 6% after two months of steep decline.
The company has more than 300 hi-tech investments and claims to own 7% of internet stocks worldwide.
The recent bear market has caused a plunge in the personal wealth of SoftBank founder Masayoshi Son, who was worth more than Dollars 40bn in February.
At one stage, Mr Son looked likely to topple Microsoft founder Bill Gates from the head of the world's rich list. Mr Gates has assets of over Dollars 70bn.
However, the gap between them has widened as Mr Gates has been only modestly affected by the internet sell-off.
When asked about SoftBank's borrowing, Mr Kitao said: 'Our debt itself is a very small amount, only Dollars 1.7bn or Dollars 1.8bn, which is very small, particularly taking into account our huge unrealised gains. So our current debt position is quite normal.'
He cited SoftBank's 51% stake in the internet portal Yahoo Japan as an example of its solid portfolio of investments: 'I think our stock prices are definitely too cheap, taking account of our huge hidden assets, companies like Yahoo.'
SoftBank's shares rose 3,000 to 52,300 ( pounds 327) - the maximum daily increase allowed under the rules of the Tokyo stock market. However, they remain well adrift of their 198,000 peak.
Mr Son is famous for his powerful connections. He is a friend of Mr Gates and is credited with helping to convert Rupert Murdoch, the global media mogul, to the joys of the internet.
SoftBank has substantial stakes in some of the largest internet operators, including ######### and E*Trade.
However, the group has attracted criticism for helping to over-inflate the internet bub ble. Many of its investments are in private companies, which are difficult for analysts to |
