|
|
  |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Hutch disagrees with DoCoMo writedown
HONG KONG, China (CNN) -- Hong Kong conglomerate Hutchison Whampoa says it disagrees with the rationale behind Japanese mobile phone giant NTT DoCoMo's writedown in the value of a stake in Hutchison 3G UK. On Wednesday DoCoMo said it would take a 573 billion yen ($4.7 billion) writedown to reflect losses in its overseas investments. The writedown includes 126 billion yen (about $1 billion) in Hutchison 3G UK, the mobile phone unit Hutchison set up to provide third-generation services in the U.K. (Full story) DoCoMo paid £1.2 billion ($1.9 billion) for a 20 percent stake in Hutchison 3G UK in July 2000. But the sharp downturn in global equity markets since then has seen the value of its stake eroded. Hutchison, which took delivery of its first 3G phones in the U.K. this week, is due to start its 3G mobile phone services later this month. Shares 3G visionHutchison Whampoa is controlled by Asia's richest man, Hong Kong tycoon Li Ka-shing, who has targeted 3G operations around the world. In a statement late Wednesday, Hutchison said it continued to share DoCoMo's vision for the future of 3G. "However, we disagree with the rationale behind DoCoMo's accounting decision announced today." It said DoCoMo's decision was made in response to fluctuations in the international capital markets, rather than any change in the "underlying business fundamentals" of the 3G business that Hutchison had built in the U.K. Hutchison said its own detailed assessment of the assets had shown no requirement to write down its investments in 3G licenses and services. "We are building real businesses and are on target to begin a phased rollout of 3G services in this quarter," it said. On Wednesday Hutchison postponed a 1.5 billion euros ($1.48 billion) bond issue, citing weak market conditions in the telecom sector. Hutchison Whampoa shares are 5.4 percent lower at HK$42.00 in Hong Kong trade late Thursday. That is its lowest price since October 1998. In Tokyo, NTT DoCoMo has closed 3.9 percent higher at 213,000 yen on a day when the broader market is about 0.8 percent weaker.
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||
