Liberty Global sees Japan deal, Asian investment

By Lucas van Grinsven, European Technology Correspondent

PARIS (Reuters) - Liberty Global (LBTYA.O: Quote, Profile, Research, Stock Buzz), the world's biggest international cable group, hopes to increase its stake in its Japanese operations and expects a deal there soon, its chief executive said on Wednesday.

Liberty Global is also looking to expand in emerging markets, possibly including India and China, Mike Fries told the Reuters Technology, Media and Telecoms Summit in Paris.

"We're happy with the way the Japanese operation is run. The issue is more about corporate structure. We might be able to improve upon the structural legacies to make the asset more valuable for our shareholders," Fries said.

"Be patient, it won't be long," he added.

Liberty Global indirectly owns 37 percent of Japanese cable firm Jupiter Telecommunications Co (4817.Q: Quote, Profile, Research, Stock Buzz) -- working with Sumitomo Corp (8053.T: Quote, Profile, Research, Stock Buzz) -- and 35 percent of a programming business, mainly a shopping channel.

"We're exploring alternatives with respect to both. We would much rather own more of the cable business than less. We think the cable operation is a strong business and we are not sellers of that," Fries said.

"Programming is less strategic and we'd look at alternatives," he added, declining to elaborate.

Liberty Global is active in 17 countries, and it has recently sold activities in mature markets and expanded in less developed cable TV markets such as eastern Europe.

"Within Central and eastern Europe, consolidation in markets is the main goal, to increase our exposure in the markets where we already have a presence," he said.

But he was also looking elsewhere, possibly including India and China.

"I'm really talking about small amounts of capital -- a dabble. We're not changing focus. We're looking at ancillary opportunities," he said.

When asked if such investments would amount to tens of millions of euros rather than hundreds, Fries said: "Something like that."

He remarked that Liberty Global put a modest investment into Hungary 15 years ago and the business there now generates annual operating profit of $150 million before depreciation and amortization.

"We have the skill set and I think sufficient amounts of capital to explore creative toeholds in new emerging markets that perhaps in 10, 15 years we'll look back on with pride," he said.

(Additional reporting by Georgina Prodhan)