C and W gets 98 pc IDC stake, set to fuel competition.TOKYO, June 16 Kyodo
Britain's Cable and Wireless PLC (C and W) said Wednesday it has clinched a 97.69% equity stake in International Digital Communications Transmitting text, voice and video in binary form. See communications. Inc. (IDC), a Japanese international telecom carrier, as a result of its five-week takeover bid Noun 1. takeover bid - an offer to buy shares in order to take over the company
two-tier bid - a takeover bid where the acquirer offers to pay more for the shares needed to gain control than for the remaining shares .
As a business strategy based on IDC facilities, C and W immediately expressed readiness to woo mainly multinational corporate clients by offering them services covering ordinary phone communications and large-capacity data transmission fields.
C and W director Stephen Pettit told a press conference that the British telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. titan is determined to provide multinational corporations
Pettit suggested C and W's willingness to conduct a sizable capital outlay capital outlay
See capital expenditure. to augment IDC's capability to offer data transmission services, saying C and W will quadruple IDC's international telecom capacity in two years.
IDC is deemed to have weaknesses in the field of data transmission, industry analysts said.
Since other major international telecom carriers operating in Japan have similar strategies targeting corporate clients, the entry of C and W in the Japanese market is set to fuel price-cutting competition, they said.
C and W said 134 of IDC's 140 shareholders agreed to sell their shares at 110,577 yen per share, far above the par value of 50,000 yen, making it certain that C and W will become the first foreign telecom firm to put a Japanese telecom carrier under its control.
IDC will be a strategic component in C and W's international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , Pettit said. IDC has provided Internet services and data transmission services besides conventional phone services.
IDC will be renamed Cable and Wireless IDC, he said.
C and W is now in talks with DDI ddI and ddC: see AZT. Corp. and Tokyo Telecommunication Network Co. -- two of Japan's telecom carriers -- to secure a domestic telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. for its services, he said.
The successful takeover bid put an end to a battle between C and W and Nippon Telegraph and Telephone Nippon Telegraph and Telephone Corporation (日本電信電話株式会社 Corp. (NTT NTT Nippon Telegraph and Telephone Corporation
NTT New Technology Telescope
NTT National Technology Transfer, Inc
NTT Name That Tune (TV game show)
NTT National Tree Trust
NTT Number Theoretic Transform ) for control of IDC dating back to March.
On May 7, C and W announced that through June 5 it would buy IDC shares at 107,372 yen per share to ward off a rival bid by NTT.
After NTT offered a higher price May 31, C and W upped its ante to 110,577 yen, while extending the deadline to June 15.
Two main IDC shareholders -- Toyota Motor Corp. and Itochu Corp., each with 17.69% stakes -- said June 9 they would sell their stakes to C and W, a day after NTT virtually gave up its takeover bid, saying it would not offer any higher price.
In a related development, NTT President Junichiro Miyazu told a separate news conference Wednesday, "The price needed for the acquisition had become too high for us."
"We had thought that if we prolonged the takeover battle (with yet another higher offer), it would negatively impact our company's own efforts to reorganize its corporate structure," he said.
NTT is set to enter international telecommunications business July 1.
Since NTT plans to cash in on big corporations' needs to communicate with overseas regions by hiring a portion of telecom capacity owned by non-NTT carriers, it will end up entering a bitter competition with IDC and other international carriers with plans to woo corporate clients, the analysts said.
In 1986, Toyota, Itochu and C and W jointly founded IDC with each putting up 17.69% of the telecom carrier's capital of 31.2 billion yen.
Meanwhile, British Secretary for Trade and Industry Stephen Byers Stephen John Byers (born April 13, 1953) is a British politician. He is the Labour Member of Parliament for Tyneside North and is a former cabinet minister. Early career
Stephen Byers was born in Wolverhampton. said in Tokyo that C and W's successful bid for IDC has shown that Japan's market is becoming open to foreign businesses and this could create jobs in Japan.
In a press conference in Fukuoka, western Japan, Byers said a lesson should be taken from the fact that a British company succeeded in entering Japan's market.