China Telecom Press Release, 6/02/08
China Telecom Corporation, the parent company of China Telecom Corporation Ltd (NYSE: CHA; 0728.HK; "China Telecom"), has agreed to acquire the CDMA network from China Unicom Ltd's (NYSE: CHU; 0762.HK; 600050.SH) parent company, China United Telecommunications Corporation, for a price of RMB 66.2 bln.
In addition, China Telecom will purchase China Unicom's CDMA business from China Unicom Corporation Limited (CUCL), a wholly-owned mainland China-based subsidiary of China Unicom Ltd, for a price of RMB 43.8 bln. China Telecom has also made an application for a resumption of trading in shares on the Hong Kong Stock Exchange, with effect from June 3. It is expected that trading on the New York Stock exchange will also resume either on June 2 or 3 New York time.
China Telecom will also acquire a certain percentage of CUCL's employees whose jobs are related to the running, support, development and general management of the CDMA network
A separate agreement with CUCL will determine what happens with China Telecom employees currently on secondment at CUCL.
To see the full details of China Telecom's announcement, please click here.