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Softbank Shares Rise as Cell Phone Service Applications Resume
By Yoshinori Eki and Kanoko Matsuyama
Oct. 30 (Bloomberg) -- Shares of Softbank Corp., Japan's third-largest mobile phone operator, rose after the company said it resumed accepting applications from customers seeking to switch price plans or cancel service contracts.
Softbank shares climbed 2.5 percent, or 65 yen, to 2,680 yen at 2:16 p.m. in Tokyo, in contrast to a 1.6 percent decline in the Nikkei 225 Stock Average. Softbank was the most actively traded stock by value on the Tokyo Stock Exchange, with 159.3 billion yen in shares changing hands.
``The system problem shows the number of people moving in and out were more than expected,'' said Yasumasa Goda, senior analyst at Merrill Lynch & Co. ``Investors think users were attracted to Softbank influenced by its advertisements.''
The company yesterday stopped accepting requests for new or changed contracts for a second day after a surge of customers overwhelmed its computer system. The increase in applications came on the first weekend after new rules took effect making it easier to switch mobile phone operators. Softbank said it will hold a press conference on the situation at 6 p.m. local time.
Softbank on Oct. 23 cut prices below that of rivals NTT DoCoMo Inc. and KDDI Corp., letting users switch providers without changing their phone numbers. Softbank Chief Executive Masayoshi Son said on Oct. 26 said he's making new handsets available to customers for no money down in exchange for monthly payments and long-term wireless service contracts.
Son, Japan's richest man, on Oct. 13 pledged a record amount of collateral to refinance the debt for taking over Vodafone Group Plc's Japanese unit. The company offered its Vodafone unit's assets, income and shares as security for $12 billion of bonds and loans it plans to sell next month. to help it compete with NTT DoCoMo Inc. and KDDI Corp.
Shares of Bell-Park Co., which operates Softbank's mobile phone retail stores, was bid higher at 109,000 yen, 10.1 percent more than its close on Oct. 27. That's the exchange-imposed maximum daily limit of 10,000 yen for the shares.
Quelle: Bloomberg
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