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Vodafone seeking JT stake?
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December 10, 2000: 7:19 p.m. ET
British mobile phone firm to buy 15% stake in Japanese telecom for $2.5B, report says
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NEW YORK (CNNfn) - Vodafone, a large U.K.-based mobile phone company, has agreed to buy 15 per cent of Japan Telecom, Japan's third largest telecommunications operator, in a deal valued at $2.5 billion, according to a published report.
The Financial Times Web site reported Sunday night that the plan is part of a strategy to take majority control of J-Phone – Japan Telecom's fast-growing mobile phone subsidiary.
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 WHY DO THE DEAL?
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The deal will give Vodafone the upper hand in its battle with British Telecommunications to take control of J-Phone -- Japan Telecom's fast-growing mobile phone subsidiary, the Financial Times reported.
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The deal, expected to be announced next week, is likely to shake up the Japanese mobile phone market, which is dominated by NTT DoCoMo, the story said. It would be the second largest investment in Japan by a foreign company.
The deal will give Vodafone the upper hand in its battle with British Telecommunications to take control of J-Phone, the Web site reported. Vodafone and BT own 26 per cent and 20 per cent, respectively, of the company. Japan Telecom has a 54 per cent stake in its mobile subsidiary, the story said.
Vodafone (VOD: Research, Estimates) is understood to have reached an agreement to acquire shares in Japan Telecom held by West Japan Railway and Central Japan Railway, two of seven Japanese railway companies that founded Japan Telecom, the Web site reported. Those companies have a 10.2 per cent and 7.6 per cent stake, respectively.
The deal would make Vodafone one of the largest shareholders in Japan Telecom along with BT and AT&T, which each own 15 per cent, the story said. The largest shareholder in JT is East Japan Railway, which has 15.1 per cent. 
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