NTT DoCoMo, KG Telecom's deal

NTT DoCoMo, KG Telecom's deal

TOKYO (AP): NTT DoCoMo is planning to invest about 6.9 billion yen (US$56 million) to increase its stake in Taiwan cell phone operator KG Telecommunications Co., Japan's top mobile carrier said on Monday.

If the deal goes through, NTT DoCoMo will raise its stake in KG Telecom to up to 21.43 percent from the current 20 percent.

NTT DoCoMo hopes to acquire newly issued shares through the two subsidiaries it set up in Taiwan when it bought KG Telecom stocks in November.

But other shareholders in KG Telecom have the option of buying the new issues first, so NTT DoCoMo's stake may end up lower than 21.43 percent, said company spokesman Norio Hasegawa.

NTT DoCoMo has been on a buying spree of minority stakes in partners in Asia, the United States and Europe, with hopes to expand its business globally through its Net-linking cell phone service, i-mode, that has proved a hit in Japan.

The company is also eying a future global market for its third-generation cell phone service, slated to start in the Tokyo area in October. The 3G technology can transmit information at up to 40 times faster than current mobile phones.