NTT Communications Corp. is considering a revaluation of Verio Inc., the U.S. Web-hosting provider it acquired last year, that could lead to a write-down amounting to billions of dollars, the Financial Times reported in its Thursday morning Asian edition.
The revaluation could be included in a ten-year business plan that NTT Communications is currently compiling for the company, the newspaper said. Behind the possible write-down is the fast deteriorating business climate in the U.S., said the report, quoting an unnamed senior manager at NTT.
NTT Communications, the long-distance and Internet arm of Nippon Telegraph and Telephone Corp., acquired Verio for US$5.5 billion last year after a four-month-long tender offer that was held up by a U.S. government investigation sparked by national security concerns. NTT, Japan's largest telecommunications company, viewed the acquisition as a chance to gain a stronger foothold in the U.S. market, where it had never been able to make much of an impression. It was also hoping to use Verio as a springboard to other international markets and since the acquisition has embarked on a plan to build data centers around the world.
An NTT Communications representative could not immediately be reached for comment.