While Vodafone shareholders are happy about the operator looking to offload its struggling Japanese mobile business to Softbank, Softbank shareholders aren't. After initially reacting positively to Softbank's desire to buy Vodafone K.K., investors appear to be souring on the idea, sending shares down yesterday and today. It's possible that S&P might be forced to cut Softbank's rating if the company makes the purchase because they are concerned about Softbank overpaying for the Japanese unit. Softbank has a lot to do to turn around the Vodafone unit, as its market share has sunk to last place among NTT DoCoMo and KDDI in a super-saturated wireless market. Still Softbank has government approval to enter the market, and the other alternative for the company is dredging up funds to build its own.
For more about concerns over Softbank's potential purchase of Vodafone K.K.:
- take a look at this blog from The Wireless Stock Blog