Rumor: Roadmap for Telecom Restructuring Unveiled
Hexun Stock, 1/10/08
A draft roadmap for the restructuring of the Chinese telecommunications industry is rumored to state that China Tietong will be merged into China Mobile (NYSE: CHL; 0941.HK), with vice-minister of the Ministry of Information Industry (MII), Xi Guohua, moving into a senior position at China Mobile; China Netcom (NYSE: CN; 0906.HK) will be merged into China Unicom (NYSE: CHU; 0762.HK; 600050.SH), and Unicom's CDMA business will be merged into China Telecom (NYSE: CHA; 0728.HK). Netcom president Zhang Chunjiang will move to China Telecom; China Telecom CEO Wang Xiaochu will take up a position with the MII and China Mobile chairman and CEO, Wang Jianzhou, will retire.
It is expected that a formal announcement regarding the commencement of the telecom industry's restructuring will take place by the end of the month.
By the time of publication, China Unicom's domestic A-share price had increased 4.92% and its Hong Kong stock had increased 6.24%.
H-shares of the other telecom operators recorded the following gains and losses:
China Mobile - down 1.9%.
China Telecom - up 1.36%.
China Netcom - down 0.82%.
Keywords: China Mobile CHL 0941.HK China Telecom CHA 0728.HK China Netcom CN 0906.HK MII China Unicom CHU 0762.HK 600050.SH HR Xi Guohua Zhang Chunjiang Wang Xiaochu Wang Jianzhou restructuring timetable A-share H-share telecom wireless
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