NTT DoCoMo has denied a Japanese press report that it has decided to book a large loss associated with its investment in Dutch cellular carrier KPN Mobile NV.
A report in the Friday morning edition of the Nihon Keizai Shimbun said NTT DoCoMo intends to book a stock valuation loss of around 400 billion yen ($6.5 billion) on its investment in KPN Mobile. The loss may be recorded in its unconsolidated earnings for the first half of the current year, which are due to be reported soon, said the newspaper.
"NTT DoCoMo confirmed that such a decision has not been made at this time," the company said in statement. However, NTT DoCoMo did not comment on whether it was considering such a move, just that such a decision has been made.
Such a write-off has been anticipated for some time.
The Japanese carrier took a 15 percent stake in KPN Mobile for 4.5 billion euros ($8 billion) in May 2000. However, the collapse in telecommunication company stock prices combined with a new Japanese accountancy law has led many to expect the announcement of a large loss. The share price of Koninklijke KPN NV, the parent company of KPN Mobile, has fallen to less than one-tenth of what it was when NTT DoCoMo made its investment, said the report.