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Telefonica to Purchase Additional 5.7% Stake in Netcom

Telefonica Press Release, 9/04/08

Spanish telecom operator Telefonica has announced it plans to purchase an additional 5.7% stake in China Netcom (NYSE: CN; 0906.HK). Initially, it will purchase up to a 2.7% stake in Netcom before Netcom's merger with China Unicom (NYSE: CHU; 0762.HK; 600050.SH) for approximately EUR 368 mln. Following the merger, it will purchase shares in the new company, representing 3% of Netcom stock.

If the first transaction is successful, Telefonica will own an approximate 9.9% stake in Netcom. If the second transaction is successful, then after the Netcom/Unicom merger, Telefonica will own approximately 5.5% of the newly merged company.

Editor's Note: Telefonica has previously stated that it plans to acquire a 10% stake in Unicom. For information please see "Telefonica Plans to Acquire 10% Stake in Unicom", MD 6/19/08 issue.

Keywords: 0762.HK 0906.HK 600050.SH China Netcom China Unicom CHU CN telecom Telefonica investment wireless

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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