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To: Scripts who wrote (10401)	3/19/1999 11:57:00 AM
From: pat mudge	Respond to of 18016

Speaking of timing: From the Globe & Mail: An announcement to outline the first phase of that expansion could be made as soon as Tuesday, said one analyst, who asked to remain anonymous. DataQuest conference: gartner.com Tuesday, 4:00 p.m., PST, Terry Matthews will be interviewed.

To: Scripts who wrote (10401)	3/19/1999 12:20:00 PM
From: Doug	Read Replies (2) \| Respond to of 18016

Todays 3% drop might be a pointer.

To: Scripts who wrote (10401)	3/20/1999 2:04:00 AM
From: pat mudge	Respond to of 18016

From the Financial Times <<<< Asia-Pacific March 20 1999 BT and AT&T seek Japan Telecom stake By Gillian Tett in Tokyo and Alan Cane in London The Tokyo Stock Exchange suspended trading in Japan Telecom shares yesterday after it emerged that British Telecommunications and AT&T of the US were considering taking a stake in the Japanese group. The two groups could invest about ¥150bn (£780m) for about 30 per cent of Japan Telecom. British Telecom and AT&T, which recently concluded their own global alliance, yesterday refused to comment. Officials at Japan Telecom indicated that the details of any deal, such as the size of a stake, were still under discussion. "Nothing has been decided or agreed yet," it said. People close to the negotiations, however, confirmed discussions were in progress but said they were at an early stage. They said the approach had been from BT and AT&T operating jointly but as separate companies rather than the as yet unnamed joint venture. They added that Japan Telecom was also in talks with other potential partners. If a deal was concluded it would be another sign of the degree to which foreign companies are entering the Japanese market through mergers and acquisitions. It would also mark the second large entry by a non-Japanese company into the Japanese telecoms market. Cable and Wireless, the UK-based telecoms group, owns 17.6 per cent of International Digital Communications and is seeking to raise this stake to a controlling 53 per cent. BT and AT&T are trying to boost their own position in Japan, partly because they fear that the C&W discussions could leave them at a disadvantage in that market. BT has made no secret of the fact that its preferred partner in Asia would be NTT. However, the Japanese domestic carrier has failed to reciprocate this interest although the two companies have a joint venture in Singapore. Industry officials yesterday indicated that Japan Telecom was unlikely to let BT and AT&T take a controlling stake. Japan Telecom has indicated recently it is keen to find a foreign partner to cope with the pressures of deregulation and enter the international market. Andrew Haskins, telecoms analyst at HSBC Securities in Tokyo, said: "Japan Telecom needs big partners and more capital in order to provide a genuine international service to its clients, invest further in its existing domestic fixed-line operations, prevent the deterioration of its balance sheet and raise capital for investment in third generation cellular services." Japan Telecom's shares yesterday rose to ¥1.42m, up ¥200,000 on the day before they were suspended. This gives the group a market capitalisation of ¥635bn. >>>>>> >>>> BRITISH TELECOMS: Suitable approach Prising open the Japanese telecommunications markets has been a painfully slow process. But BT appears to be pursuing a sensible mix'n'match approach. It is building up a presence organically by investing in an optic-fibre network. But cheap equity stakes do not come up that often. So BT's interest in buying into Japan Telecom looks sensible. Admittedly, Japan Telecom's business in fixed-line telecoms is under pressure from deregulation. And the company has nowhere near the muscle of NTT. But on a price to sales ratio of just 1.3, the company's stock is pricing in the tough trading. It may even be underestimating Japan Telecom's web of mobile telecoms investments. New cash from equity investors could help it rationalise this portfolio by buying out partners. By negotiating a joint investment with AT&T, BT is also cementing its alliance with the US operator. True, the duo would be a long way from gaining control with a mooted $1.3bn investment. But a big enough stake should mean they can use Japanese Telecom to distribute their global services to Japanese corporates. Of course, a BT stake in Japan Telecom does make an alliance with NTT look ever more unlikely. But since years of flirting bet-ween the two have failed to yield anything meaty, this is no huge loss. >>>>>>