Printer Friendly

MOF to be flexible in offering NTT shares.

TOKYO, June 27 Kyodo

The Ministry of Finance (MOF) said Wednesday it plans to be more flexible in the timing and size of public share offers in Nippon Telegraph and Telephone Corp. (NTT), a shift from the current method of infrequently offering a massive group of NTT shares at once.

With the new method, the ministry may conduct several offerings of a smaller amount of shares at a time, starting in the current fiscal year.

A ministry official said the government will be carefully monitoring the stock market to determine the appropriate timing and size of the offerings.

The ministry is also expected to accept buybacks of the shares by NTT under a treasury stock system.

Under this system, companies are permitted to buy back their own shares and hold them in reserve and is aimed at improving the supply-demand situation in the stock market.

The government last made a public offer of NTT shares last November, the sixth of its kind since 1986. The government still owns a 45.96% stake in NTT.

A review of the offering method has been called for because the government has suffered from price falls of the NTT stocks while in the process of offering new shares.

The ministry made the decision in line with a proposal made the same day by a subcommittee of the ministry's Fiscal System Council.

The proposal includes shortening the period of the public offering and selling the shares privately to some institutional investors.
COPYRIGHT 2001 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:NTT Topics
Date:Jul 2, 2001
Words:246
Previous Article:FTC suggests dealing with NTT DoCoMo.
Next Article:NTT East to cut Internet service fees next month.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |