Cisco buys into Softbank

Cisco buys into Softbank

TOKYO (AFP): U.S. computer giant Cisco Systems Inc. said Thursday it was investing US$200 million in Japan's Softbank Corp. as part of an alliance aimed at developing Internet infrastructure throughout Asia.

Cisco said it would acquire a 1.65-percent stake in Japan's top Internet investor next month through a third-party allocation of shares worth 23.3 billion yen ($199 million).

"Cisco and Softbank have a long history of tackling new opportunities together and then delivering results," said the California-based company's president, John Chambers.

"Both Cisco and Softbank are dedicated to making strategic investments to further the development of the Internet in Asia and throughout the world," he said in a statement.

Cisco will buy 5.56 million Softbank shares on February 13 at 4,197 yen each, which represents a steep discount to Softbank's close on Thursday of 7,050 yen. The stock rocketed 1,000 yen or 16.53 percent over the day.