Vodafone set for Japan Telecom stake

LONDON, U.K. -- Britain’s Vodafone Group, the world’s largest mobile phone company, will buy AT&T’s 10 percent of Japan Telecom for $1.35 billion, taking its stake in the Japanese carrier to 25 percent.

Vodafone confirmed the deal Tuesday, following news reports at the weekend that it was contemplating the move.

The deal means that it raises Vodafone’s interest in the prized Japanese cellphone group J-Phone to about 40 percent.

Vodafone said it was paying about 2.458 million yen ($21,200) per Japan Telecom share -- a premium of about 30 percent over Japan Telecom’s closing price on Monday.

The agreement leaves Vodafone in a prime position to take control and raises questions about whether 20 percent Japan Telecom shareholder British Telecommunications can hang onto its stake.

British Telecom has said it is committed to Japan but it needs to raise cash to cut a 30 billion pound debt pile.

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