[Intl-tobacco] Japan to study govt holdings in Japan Tobacco (fwd)

[Robert Weissman]

Japan to study govt holdings in Japan Tobacco
Source: Reuters, Tuesday, 1/30/01

TOKYO, Jan 30 (Reuters) - Japanese Finance Minister Kiichi Miyazawa on
Tuesday requested a ministerial panel to review the government's holdings
in Japan Tobacco Inc , the world's third-largest tobacco group.

The government may cut its holdings in Japan Tobacco to 50 percent from
66.7 percent to increase the former state tobacco monopoly's independence
and enable it more easily to form capital alliances with other firms,
domestic media said earlier this month.

A panel on fiscal administration would review the management and public
sector involvement of the government in Japan Tobacco, Miyazawa said.

The panel will compile a report by the autumn.

The Finance Ministry could submit a bill to parliament in 2002 to allow
the sales of government shares, domestic media have said.

Any such move, however, is expected to face opposition from ruling
coalition members who fear the government's influence on Japan Tobacco
will decline due to the deregulation.

Once the bill is passed, the government will sell the shares in steps to
avoid any possible damage to the market, domestic media said.

The news came after the market close and shares in Japan Tobacco closed
down 0.48 percent at 836,000 yen.