China Telecom Denies Merger Report
HONG KONG, Jul 13, 1999 -- (Reuters) China
Telecom (Hong Kong) Ltd said on Tuesday it may
become a subsidiary of a new Chinese mobile
telecommunications firm now being formed, but
denied that it would be merged into the new group.
"China Telecom is expected to become a subsidiary
of the China Mobile Telecommunications Company
and that has been stated clearly in our annual
report," a company spokesman said.
He denied a report by the pro-Beijing Ta Kung Pao
newspaper on Tuesday which quoted sources in
China's Information Industry Ministry as saying that
Hong Kong-listed China Telecom (Hong Kong) would
merge with China Mobile.
The new company would gradually inject its assets
into China Telecom (Hong Kong), the Beijing-funded
newspaper said.
According to Beijing's plan for the restructuring of
China's telecommunication industry, the
near-monopoly China Telecom would be reorganized
into four companies based on business lines,
comprising fixed-line, mobile, satellite and pager
networks.
China Telecom controls China Telecom (Hong Kong)
Group Ltd, the parent of the Hong Kong-listed China
Telecom (Hong Kong) Ltd.
China Telecom (Hong Kong) owns and operates
mobile phone networks in China's Guangdong,
Zhejiang and Jiangsu provinces. Its ultimate parent,
China Telecom, owns mobile phone networks in
other provinces in China.
"According to the draft plan for the restructuring of
the telecommunications industry, China Telecom will
be reorganized based on business lines and it is
anticipated that the group, (China Telecom (Hong
Kong) Ltd) may come under the control of the China
Mobile Telecommunications company to be
established," the spokesman said. ((c) 1999
Reuters) |
