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Technology Stocks : Softbank Group Corp -- Ignore unavailable to you. Want to Upgrade?

To: high.hopes who wrote (5462)	8/10/2000 9:01:46 PM
From: TobagoJack	Respond to of 6020

I want to grin more, sooner, because of cash in my pocket as opposed to a hole in my portfolio. Here is some FT.com comments ... my spin on the bit about the terminated deal in Poland is simple ... our 9984 is a hard bargainer and the Polish outfit do not read the headlines. QUOTE Softbank reviews its strategy By Alexandra Harney in Tokyo Published: August 10 2000 21:37GMT \| Last Updated: August 10 2000 21:45GMT Softbank, Japan's leading internet investment group, is reviewing its strategy after last week's cancellation of plans to list five group subsidiaries and create a holding company structure. Although the company denied there was any significant switch in strategy, senior executives are understood to be considering changes because of concerns about cash flow and the weakening of the market for initial public offerings. Softbank has been the most aggressive investor in internet companies in Japan over the past year. The group's high-profile investments have included Yahoo!, the internet portal, Nasdaq Japan and Nippon Credit Bank, the nationalised bank it agreed to buy from the government in June. Its hopes for the internet's potential in Japan set the tone for the frenzy of spending by other venture capital groups and investment banks that began last year. But this spring Softbank issued a profit warning and its shares have been hit by the collapse of global technology stocks. Softbank's shares have fallen more than 70 per cent since their February peak, although they revived slightly yesterday to close up 1.4 per cent, or Y150, at Y10,900 ($100). Analysts said the group was likely to sell more of its assets following the sale of its stake in Kingston Technologies last July and some of its stake in Yahoo!. "The strategic goal is to sell steadily," said one person close to Softbank. However, the group will face stiff tax rates in repatriating funds to Japan. The group may also be forced to reduce the number of new investments because some of its ventures have not turned out as hoped. Softbank's acquisition of NCB has been controversial within the company, although the deal seems likely to be completed. Other industry executives are also sceptical about the company's alliance with the World Bank to develop the internet in emerging markets. For instance, Softbank last week pulled plans for a financial portal with Agora, Poland's largest media group, after failing to agree terms. The IPO plans for Softbank's subsidiaries - once the most ambitious in the industry - may also have to be scaled back further. The group is understood to have postponed some IPOs in the US, although it has stressed that there was no change in the listing plans for Japan. Such a move would be particularly painful for Masayoshi Son, chief executive, who believes that floating companies helps stimulate management. Denying any major strategy change, Softbank said: "We have changed the plan to float our five internal companies, but we are still planning to list all of our subsidiaries." Analysts were sceptical, saying Softbank was good at changing tactics. "The market is a tough place to list right now," said Thomas Rodes at Nikko Salomon Smith Barney. UNQUOTE