UPDATE 1-Softbank drops issue after shareholder revolt

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TOKYO, May 20 (Reuters) - Japanese Internet and telecoms group Softbank Corp (9984.T) dropped on Tuesday a plan to issue preferred shares after some shareholders revolted, because of concerns about a negative impact on its share price.

Softbank, Japan's No.3 mobile phone operator, said this month it would seek shareholder approval to issue up to 1.8 billion preferred shares to fund possible acquisitions and expand its business. [ID:nT45039]

In a statement, the firm said it had decided not to put preferred share issue for approval at its shareholders meeting scheduled on June 25 after reviewing opinions from its stock holders.

Preferred shares would carry higher dividends but no voting rights.

Prior to the announcement, Softbank ended the morning session down 2.4 percent at 1,864 yen. (Reporting by Taiga Uranaka)