Unicom Asks RMB 120 bln for CDMA Network
Oriental Morning Post, 5/27/08
According to a China Unicom (NYSE: CHU; 0762.HK; 600050.SH) insider, the company has put an RMB 120 bln price tag on its CDMA network during preliminary contact with China Telecom (NYSE: CHA; 0728.HK). China Telecom, in turn, has suggested a price of around RMB 50 or 60 bln. China Telecom is understood to be aiming for a price of RMB 80 bln, with a deal likely to be made at about RMB 80 to 100 bln.
According to further rumors, the China Unicom (NYSE: CHU; 0762.HK; 600050.SH) and China Netcom (NYSE: CN; 0906.HK) merger will take place by combining the companies' provincial and city branches, with the company with the stronger presence in any one location determining who will take the lead. This means that China Netcom will take control in its ten northern provinces, with China Unicom leading in the southern market. The merger process may therefore be dragged out and suffer from personnel disputes.
Keywords: restructuring M&A 0728.HK 0762.HK 0906.HK 600050.SH CDMA CHA China Netcom China Telecom China Unicom CHU CN telecom wireless
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