Fujitsu says no concrete plan for Nifty IPO

TOKYO: Japan's Fujitsu Ltd. said on Monday it has no concrete plan to take

its Internet service provider (ISP) unit Nifty Corp public, responding to a

newspaper report that an IPO would be carried out as early as next business

year.

Nifty, wholly owned by Fujitsu, Japan's largest computer services firm, is

the country's biggest ISP with 5.18 million subscribers as of the end of March.

"We aim to take Nifty public eventually. But nothing has been decided on

concrete steps and timing," a Fujitsu spokesman said. "The stock

market is not favorable and we can't hope for that much in capital gains,"

he said.

The Nikkan Kogyo business daily said Fujitsu had reversed its plan to sell

Nifty after negotiations with electronics giant Sony Corp. fell through.

Fujitsu now aims for capital gains through the initial public offering (IPO)

as well as synergy with its own network businesses, the paper said. Sony, the

world's largest audiovisual electronics maker, in May announced an end to talks

with Fujitsu on a tie-up with or possible purchase of Nifty.

Nifty president Tatsuzumi Furukawa said last week the company already met

Japanese listing standards, but that the timing was not right for an IPO due to

the global slump in ISP shares. Shares in Fujitsu were trading up 3.23 per cent

at 862 yen as of 0345 GMT, helped by strong gains on the US Nasdaq market as

well as the newspaper report on the Nifty IPO.

(C) Reuters limited.