DoCoMo adopts cautious attitude to SK stake
By Reuters staff
26 March 2001
Japan's top mobile carrier NTT DoCoMo Inc is taking a cautious attitude towards
purchasing a stake in Korea's largest mobile firm SK Telecom with the Korean
company's share prices falling, a local newspaper reported on Monday.
"We are reviewing cooperation with SK Telecom in various ways, but nothing has
been decided yet," the Seoul Economic Daily quoted NTT DoCoMo Chairman Koji
Oboshi as saying in an interview.
SK Telecom , South Korea's largest mobile carrier, has been in talks with DoCoMo
since early last year to sell a stake of about 15 percent to the Japanese firm with a
view to striking a deal by the end of March, 2001.
"I cannot tell how the talks with SK Telecom over the stake purchase would end,"
the top DoCoMo official was further quoted as telling the newspaper.
SK Telecom officials said talks with DoCoMo were still under way and could not
comment.
Analysts said the talks were being delayed partly due to the sharp falls in SK
Telecom shares in line with the general downturn in the equities market.
In a move seen as preparation for selling a stake, the SK Group said in January it
had agreed to sell a 14.5 percent stake in the telecom unit held by two affiliates for
293,500 won per share, or 3.8 trillion won ($2.91 billion) in total, to Signum IX, an
investment firm in the Cayman Islands.
The terms of the deal provide for Signum to pay only the purchase price of the
shares if a strategic partner, such as DoCoMo, agrees to buy them by the end of
March.
The Korean newspaper said the March deadline for Signum IX could be extended to
facilitate the stake sale. SK officials declined to comment.
SK Telecom shares were up 500 won at 198,500 at 0025 GMT.
SK Telecom ended last year down 47.4 percent from a closing peak of 481,000 won
in March. It outperformed the broader Korea Composite Stock Price Index , which
fell 50.9 percent last year.
Goldman Sachs is a financial adviser in SK Telecom's pursuit of a strategic allianc
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