Update: China Mobile to Buy Shares in Shanghai Pudong Bank
Securities Times, 3/03/10
China Mobile's (NYSE: CHL; 0941.HK) plans to purchase a stake in the Shanghai Pudong Development Bank (SPD) have been confirmed. Rather than the China Mobile Group, the operator's Guangdong subsidiary will invest in SPD. After the investment, China Mobile will not participate in SPD management or operations, but rather act as a purely financial investor.
Editor's Note: Later today, China Mobile released an announcement stating that it has entered into discussion with SPD regarding the potential purchase of SPD shares and details of strategic cooperation by China Mobile or its subsidiary. The announcement stated that China Mobile is yet unable to confirm the details of a possible stock purchase and other cooperation with SPD, therefore whether or not the transaction goes through is yet uncertain.
On February 25, the Shanghai Pudong Development Bank (SPD) announced in a filing that it would suspend trading of its stock starting on February 26. For more background on this topic, please see "Rumor: China Mobile to Buy 20% of Shanghai Pudong Bank" MD 2/26/10 issue.
Keywords: China Mobile investment wireless Shanghai Pudong Development Bank CHL 0941.HK
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