Rumor: PICC Drops Plan to Invest in Datang Mobile

Sina Tech, 7/17/09

According to an industry source, the People's Insurance Company of China (PICC) has changed its previously announced plans to purchase RMB 1.5 bln of stock in Datang Mobile, and may be replaced by other strategic investors, though the news was not confirmed by either party. PICC's reason for dropping its plan are currently unclear, but according to industry sources, the change of course may be due to internal disagreements within PICC. Other sources believe that the price wars in the TD-SCDMA equipment industry caused PICC to lose confidence in Datang's potential for growth.

Editor's Note: In December 2007, PICC and Datang Telecom Technology & Industry Group signed a stock purchase agreement of intent. PICC was to purchase RMB 1.5 bln of stock in Datang Mobile through its subsidiary, PICC Property & Casualty.

Keywords: Datang Datang Mobile PICC wireless investment PICC Property and Casualty strategic investor TD-SCDMA

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