Softbank Corp. President Masayoshi Son on Thursday rejected criticism that Internet companies' share prices have been inflated as part of what industry analysts have termed a "Net share bubble."
"Share prices tend to experience an excessive upswing or downswing on a short-term basis," Son told shareholders after the firm's general shareholders' meeting.
"But in the long term, the assessed value of our share price will eventually correspond to the essential value of our company," and its real conditions," he said.
Softbank's share price is now around 10 percent of the peak price recorded in February this year, ending trading Wednesday at 18,180 yen.
Son rejected allegations by some securities industry analysts that Softbank plans to use the newly inaugurated Nasdaq Japan market to float shares of its own group's startups, irrespective of their profitability.
"Since we are to select and examine the listing qualifications of each would-be corporate entrant into the market, there is no rationale for the criticism that Nasdaq Japan is a bourse formed mainly for our benefit," he said.
Son also denied suggestions that a Softbank-led consortium plans to buy the nationalized Nippon Credit Bank to have it extend loans to cash-strapped firms in its group.
"We have no intention to make the bank into our institutional bank," he said.
He pointed out that Softbank has not yet decided to buy the NCB, although it has signed a preliminary agreement contingent on the reconciliation of the remaining differences over the terms of the proposed contract with the government's Financial Reconstruction Commission.
New Softbank director
Softbank Corp. stockholders approved the appointment of Kazuhiko Kasai, former chairman of Yasuda Trust & Banking Co., as director Thursday.
Kasai will replace Yasumitsu Shigeta, president of Hikari Tsushin, who resigned in April.