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Vodafone in Talks to Sell Japanese Division

5:00 am on March 4, 2006 | Category: Business

UK-based Vodafone Group has reportedly entered talks to sell its struggling Japanese unit to Softbank Corp.

Sources indicate that the deal could be worth significantly more than the 1 trillion (US$8.6 billion) figure discussed by the two companies over a year ago.

Vodafoneâ€™s Japanese division has contributed to the corporationâ€™s troubles for some years now, and most analysts believe that selling it would be a good idea. It would also reduce a lot of pressure from shareholders for Vodafone to sell its stake in US-based Verizon.

Softbank has not yet commented on its possible new purchase, and Vodafone says that its too early to tell if the deal will go through.

Shares in the British mobile giant have leapt on the news, however, closing about 8.5% higher. Vodafone can definitely go into this deal with a healthy level of support from their investors.

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