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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 154.12

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To: Ramsey Su who wrote ()	6/27/2000 9:23:00 AM
From: Dennis Roth	Read Replies (1) of 197297

South China Morning Post/ Hutchison, DoCoMo in talks on UK tie [European Intelligence Wire ] iview1.newsedge-web.com Europe Intelligence Wire via NewsEdge Corporation : Hutchison Whampoa has entered into talks with Japan-based NTT DoCoMo to sell a 15 per cent stake in its third-generation (3G) mobile-phone joint venture in Britain, according to analysts. A decision on the partnership could be made soon, as NTT DoCoMo executives were in Hong Kong this week for discussions on linking up with Hutchison in Britain, analysts said. "We expect a deal between NTT and Hutchison, as it would fit well into the global strategies of both companies," Nomura Securities analyst Mark Simpson said. On Thursday, London-based Financial Times reported that NTT DoCoMo was considering a move into Britain's mobile-phone sector by forming a partnership with Hutchison and Canada-based Telesystem International Wireless (TIW). Hutchison owns 90.1 per cent of TIW UMTS, the 3G joint venture, while TIW owns the remainder. TIW UMTS paid GBP4.38 billion (about HK$51.56 billion) to the British Government for the 3G licence in April. It is not clear whether discussions this week in Hong Kong focused on DoCoMo buying the stake from Hutchison or from both joint-venture parties. Neither Hutchison nor DoCoMo executives were available yesterday. Analysts speculated a 15 per cent stake in TIW UMTS would cost about US$1.95 billion, based on the planned investment of about US$13 billion by Hutchison and TIW in the joint venture. Hutchison and DoCoMo - Japan's largest mobile-phone operator - have already linked up in Hong Kong. DoCoMo last December bought a 19 per cent stake in Hutchison's telecommunications arm - Hutchison Telecom - for US$410 million. In May, NTT DoCoMo also entered into talks to acquire up to 20 per cent of United States-based VoiceStream Wireless in which Hutchison has an effective 23 per cent interest. "I am not surprised to see an all-front co-operation with DoCoMo and Hutchison," Credit Lyonnais Securities (Asia) head of Asian Telecoms research Edison Lee said. "Both companies are upcoming, aggressive players in the global telecoms market." Both companies also want to be key players in Europe's 3G market. Hutchison is one of nine bidders for a 3G licence in Germany and it has set up a joint venture with Investor - the largest investment-holding company in Sweden - to bid for a 3G licence from the Swedish Government. The company has also said it was interested in applying for 3G licences in France, the Netherlands and Switzerland. NTT DoCoMo has a 15 per cent stake in Netherland's KPN Mobile. NTT DoCoMo managing director Kiyoyuki Tsujimura told the Financial Times: "Europe is developing fast, so we cannot ignore this trend." Analysts said a Hutchison-DoCoMo partnership in Britain would help improve the Hong Kong company's financial flexibility in its efforts to win more 3G licences. Hutchison chairman Li Ka-shing has said the firm could spend more than HK$100 billion on a German 3G operation.

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