Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →AT&T Corp. and British Telecommunications plc (BT) agreed in April 1999 to acquire a combined 30% stake in Japan Telecom Corp., with each taking 15%. The deal paired an equity investment with a plan to combine local operations and expand Japan Telecom’s role in delivering global communications services to business customers.
What the companies agreed to buy
On April 25, 1999, AT&T and BT announced plans to take equal 15% interests in Japan Telecom, giving the two companies a combined 30% stake. The investment was part of a strategic partnership intended to strengthen Japan Telecom’s data and international services and connect the Japanese carrier with the partners’ wider global-services venture.
Contemporaneous reports gave different dollar values for the transaction. EE Times reported $1.83 billion; The Washington Post reported $1.85 billion. BT later described the deal as £1.2 billion in its closing announcement. These are source-attributed figures: the sources reviewed do not explain the small difference between the two dollar reports.
| Source | Reported transaction value | Context |
|---|---|---|
| EE Times | $1.83 billion | April 26, 1999 report |
| The Washington Post | $1.85 billion | April 25, 1999 report |
| BT | £1.2 billion | BT’s September 2, 1999 closing announcement |
How the partnership was meant to work
Combine Japanese operations
Japan Telecom was to integrate AT&T’s Japanese business, AT&T Jens, with BT’s Japanese communications and network-information operations. The intended result was a stronger local platform for data and international communications services.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →#1 Best Overall
Serve multinational businesses
The partners planned for Japan Telecom to serve multinational corporate customers and distribute the global venture’s branded services in Japan. BT’s September announcement said Japan Telecom had been appointed distributor of Concert global managed services. It also said distribution of the wider global-venture branded services was still contingent on U.S. regulatory approval, so the two service descriptions should not be treated as having the same approval status at that point.
BT chief executive Sir Peter Bonfield called the closing “an important milestone” and said the deal positioned the partnership for growth in multinational sales, data, mobile and Internet services in Japan. BT’s September 2 announcement also said the transaction had closed two months ahead of schedule.
Rank #2
When it closed
BT said definitive agreements were concluded on August 31, 1999, and announced closure on September 2. That closing announcement followed the April agreement announcement and documented Japan Telecom’s appointment as distributor of Concert global managed services.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened to the stakes later
The original partnership interests did not remain in that form. Vodafone’s 2004 Form 20-F records that it acquired a further 10% of Japan Telecom from AT&T in April 2001 and agreed in May 2001 to acquire BT’s Japan Telecom and J-Phone interests. Those disclosures establish transfers involving both original investors, but do not by themselves provide a complete subsequent ownership history.
Rank #3
Sources: EE Times, April 26, 1999; British Telecommunications plc, September 2, 1999 announcement and 1999 annual report; The Washington Post, April 25, 1999; Vodafone Group plc, 2004 Form 20-F.
Quick Recap
Best Value
- Used Book in Good Condition
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
