Rumor: China Mobile Submits Tietong Merger Plan to SASAC
Sohu IT, 6/08/08
Leaks from industry insiders suggest that China Mobile Communications Corporation (CMCC) has already submitted its comments on its absorption of fixed-line operator China Tietong to the State-owned Assets Supervision and Administration Commission (SASAC). The suggestions promote establishing a telecommunications company devoted to railroad communications within the China Mobile Communications Corporation (CMCC) which will be responsible for railroad telecommunications, raising the caliber of network staff, and strengthening railroad maintenance. The plan would also seek to establish a telecommunications firm under CMCC to be responsible for network maintenance and project construction, and merge a portion of Tietong's assets with the publicly-traded arm of China Mobile (NYSE: CHL; 0941.HK).
Public spokespersons for China Mobile and China Tietong denied any knowledge of such a document.
Keywords: restructuring wireless railway strategy 0941.HK China Mobile China Mobile Communications Corporation China Tietong CHL fixed-line SASAC telecom
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