Possible split for KDDI

16 Feb 2004

Japanese operator KDDI has announced possible plans to hive off its fixed line business to form a new free standing company, in order to concentrate on its mobile operations. The operator, whose shares rose by as much as 2.9% following the announcement, said it would transfer all its non-cellular operations – including around 3,000 staff – into a separate company as part of the plan. The move would allow KDDI to cut costs considerably as the fixed line business is one of its biggest money-losing operations.

Japan, KDDI (au)