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NTT DoCoMo faces £2.3bn write-off on KPN deal

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 a Japanese newspaper claimed NTT DoCoMo intends to book a stock valuation loss of around Y400bn (£2.3bn) on its investment in KPN Mobile. The loss may be recorded in its unconsolidated earnings for the first half of the current year, which is due to be reported soon, the newspaper said.

"NTT DoCoMo confirmed that such a decision has not been made at this time," the company said in statement.

However, such a write-off has been anticipated for some time.

The Japanese carrier took a 15% stake in KPN Mobile for 4.5bn euros (£2.8bn) 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, according to the report.
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