Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : NTT DoCoMo Inc. (DCM) -- Ignore unavailable to you. Want to Upgrade?

To: quick_thinking who wrote (42)	4/29/2004 9:15:39 AM
From: Eric L	Respond to of 55

DoCoMo Succession Plan Changes << NTT rejected DoCoMo's choice of Shiro Tsuda in an interesting development. Some people say that NTT wanted to show it's power as the major share holder of DoCoMo. >> * DoCoMo wanted to appoint Shiro Tsuda, as successor to current Chief Executive Keiji Tachikawa, but the move was blocked by its parent company Nippon Telegraph and Telephone Corp. * Company sources now see Masao Nakamura, a senior executive vice president at DoCoMo, as the strongest candidate and an acceptable choice to both NTT and DoCoMo, >> DoCoMo Changes CEO Choice After NTT Veto--sources Yukari Iwatani Kane Reuters, Tokyo April 21, 2004 forbes.com A veto of NTT DoCoMo Inc's choice of chief executive has forced Japan's dominant mobile operator to choose a new candidate just weeks before the announcement is expected, company sources said on Wednesday. DoCoMo wanted to appoint Shiro Tsuda, a senior executive vice president, as successor to current Chief Executive Keiji Tachikawa, but the move was blocked by its parent company Nippon Telegraph and Telephone Corp, the sources said. Analysts and industry experts believe long-standing resentment by NTT over DoCoMo's efforts to assert its independence from the group finally came to a head, and NTT is now trying to strengthen its influence. Company sources now see Masao Nakamura, a senior executive vice president at DoCoMo, as the strongest candidate and an acceptable choice to both NTT and DoCoMo, although NTT may still decide to appoint an executive from another group company. "Nakamura is viewed internally as an executive who would be able to work with the parent company without giving up control," said one DoCoMo source. "It would be acceptable to us if NTT decided on Nakamura." A spokesman for DoCoMo said: "No decisions have been made in this matter." NTT declined to comment. NTT owns 62 percent of DoCoMo, which contributes the bulk of its earnings. DoCoMo's market capitalisation of 11.6 trillion yen ($106.4 billion) is significantly larger than NTT's 9.2 trillion yen, which includes the government's 45.9 percent stake. "We think this case will be a litmus test of how effectively DoCoMo can balance the demands of NTT with those of minority shareholders with respect to corporate governance," said Kazuyo Katsuma, J.P. Morgan telecoms analyst, in a research note. NTT has so far given DoCoMo freedom to manage its business due to the contributions DoCoMo has made to it, particularly following the success of its i-mode Internet technology. But the situation changed after DoCoMo's competitive edge started slipping and second-ranked KDDI Corp overtook it in subscriber additions for the first time in 2003. Nakamura started his career at NTT and worked under current NTT Chief Executive Norio Wada while in its key labour relations division. But he has been at DoCoMo since its inception and is seen as an insider by DoCoMo employees. DoCoMo's succession plans have been closely watched since Tachikawa is finishing his third two-year term as chief executive. Japanese companies typically consider six years to be the limit in any executive position. Tsuda, who has also been with DoCoMo since its inception, had been the popular choice and some investors considered his recent trip to the United States to be a sign he would be appointed. But there had been concerns of a possible upset owing to DoCoMo's cool relationship with its parent, which has final say. The Asahi Shimbun newspaper reported earlier this week that Tsuda was no longer considered a viable candidate. Nakamura is expected to focus on DoCoMo's domestic business, steering it away from overseas investments, which Tachikawa favoured. Industry observers believe Tsuda would have taken a similar approach, but they said he was at a disadvantage because he, like Tachikawa, comes from an engineering background, and NTT prefers its CEOs to have alternating backgrounds. The announcement is due on May 7, when DoCoMo reports its earnings. Health concerns also arose after presidents of two NTT companies unexpectedly retired from their positions in March, citing health. Tsuda fell ill for a brief period last October, during which he was admitted to hospital. ($1=109.03 Yen) << - Eric -