British mobile phone group Vodafone says it is in talks to sell a controlling stake in its Japanese subsidiary, Vodafone KK, to Japanese Internet firm Softbank.
Analysts estimate that the Vodafone unit could be worth £7 billion and the price of shares in British company rose sharply after the announcement.
In recent months, Vodafone has been under pressure from investors to shake up its international strategy after two disappointing trading updates and some analysts had called for the company to sell off the underperfoming Japanese business.
Softbank has acquired a third-generation (3G) licence to operate in the ultra-competitive Japanese mobile market next year.
The group reportedly approached Vodafone late last year about renting airtime on its network in Japan but returned afterwards with a firm bid for a majority stake in the operation.
Vodafone's statement followed press speculation regarding Vodafone KK, and Vodafone said a further announcement would be made in due course. Vodafone has been scrambling to reverse a decline in subscribers after the initial introduction of its 3G services flopped.
