Shares in internet giant Yahoo Japan have surged in Tokyo after it cancelled plans to buy domestic telecom company eAccess from its parent SoftBank Corp. in a deal valued at $US3.2 billion ($A3.46 billion).
About 10am on Tuesday, the stock had jumped 9.97 per cent to 452 yen after climbing to an intraday high of 471 yen, or 14.59 per cent higher than the previous day in the opening minutes of trade.
In March, Yahoo's Japanese unit - whose top shareholder is SoftBank - announced the deal which it said was aimed at growing the firm's internet services business through smartphones and tablets.
But on Monday, Yahoo Japan said it had called off the merger after concluding it was more effective to operate the two firms independently.
The deal had been scheduled for completion in early June, when eAccess is set to merge with telecom company Willcom Inc., also a member of the SoftBank group.
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That deal is still scheduled to go ahead.
