Japanese Regulator Examines KDDI's Planned Deal for Jupiter

Japan's Financial Service Agency is examining whether KDDI Corp.'s planned $4 billion purchase of a major stake in Jupiter Telecommunications Co. from Liberty Global Inc. violates share transaction law, according to a person familiar with the matter. If the FSA's examination of the deal expands to a formal investigation, it could pose a potential hurdle to Liberty's exit from the Japanese market as the company looks to shift resources toward the European cable-TV industry. KDDI, Japan's No.2 cable-television company by subscribers, said the FSA made inquiries regarding the Jupiter transaction, but the agency has not conducted a search of KDDI's office, usually one of the steps in a full-scale investigation. KDDI said it believes the arrangement related to the Jupiter share purchase is in line with the rules.