Mobile phone giant Vodafone mounted a bid yesterday to gain control of Japan Telecom Co Ltd, taking another step to become the top provider of advanced global wireless services.

That would put Vodafone, which is already the top shareholder in Japan's third-largest carrier Japan Telecom, into direct competition with NTT DoCoMo Inc, Japan's top mobile operator and its main challenger on the global stage.

The world's largest wireless carrier said it was discussing with East Japan Railway Co (JR East) the possibility of buying all or part of its 15.1 per cent stake, the second-largest.

Vodafone said in a statement that discussions "may or may not lead to a public tender offer to acquire up to 21.7 per cent of Japan Telecom's shares".

With a combined 66.7 percent stake, Vodafone - which bought Eircom's mobile arm, Eircell in May - would be able to clinch management control over Japan Telecom and more importantly, its crown jewel, mobile unit J-Phone Communications Co Ltd.

Japan Telecom shares closed 4 per cent higher, far outpacing its rivals Nippon Telegraph and Telephone Corp (NTT), Japan's top carrier, and number-two KDDI Corp. Vodafone rose 6 per cent.

The British company already is set to hold a direct 39.67 per cent stake in J-Phone, apart from its investment in Japan Telecom, after it is consolidated into a single company from four separate units on November 1st. Japan Telecom and JR East confirmed that talks had been initiated,

"It's clear that this was their plan all along but it seems a bit early to be making announcements," said Kirk Boodry, telecoms analyst at Dresdner Kleinwort Wasserstein.