Rumor: Unicom Subscriber Resource Valued at RMB 60 bln
Sina Tech, 3/11/08
A rumor that China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) subscriber resources have been valued at RMB 60 bln caused Unicom's share price to drop from RMB 10.08 to RMB 9.70 yesterday, its lowest level for several months.
Online postings said that "the State-owned Assets Supervision and Administration Commission (SASAC)'s proposal for a telecom sector restructuring has been approved by the State Council and passed to the National People's Congress (NPC) for consideration. The proposal is basically the same as the 'five-into-three' plan seen earlier. From March 18, China Telecom (NYSE: CHA; 0728.HK) will purchase China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) CDMA network, with users valued at RMB 60 bln (final value to be determined by the National Audit Office); and equipment value to be determined by SASAC and paid for by a transfer of SASAC-held shares. Adjustments to domestic A-shares and Hong Kong H-shares have already been decided by regulators, with provincial branches to complete transfers by April 20 and personnel reallocations to be finished by May 1 in the ten northern provinces. "
A China Unicom executive denied this.
Keywords: National Audit Office A-share H-share 0728.HK 0762.HK 600050.SH CDMA CHA China Telecom China Unicom CHU NPC restructuring SASAC State Council telecom wireless
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