UPDATE - Motorola, LU, others win $2 bln of China deals-sources
Monday January 12, 11:30 pm ET
By Ben Klayman and Juliana Liu
CHICAGO/BEIJING, Jan 12 (Reuters) - Motorola Inc (NYSE:MOT - News) and Lucent Technologies Inc (NYSE:LU - News) will lead U.S. companies on Tuesday in signing more than $2 billion of sales to China's top telecoms and computer firms, sources close to the deals said.
Motorola's wireless equipment unit will announce deals worth more than $1 billion with cellphone carriers China Unicom Ltd (HKSE:0762.HK - News; NYSE:CHU - News) and China Mobile (Hong Kong) Ltd (HKSE:0941.HK - News), said one source who asked not to be named.
The deals, which will be fulfilled over an extended period, will be announced in Washington and come as China falls under growing pressure to ease its trade imbalance with the United States.
"There is definitely an element of political theatre in this, but it correctly sends a strong message about the importance of bilateral relations and bilateral trade," said Patrick Horgan, managing director of consultants APCO Worldwide in Beijing.
Lucent will receive about $350 million in contracts, while Cisco Systems Inc (NasdaqNM:CSCO - News) will get about $140 million from Unicom and China Telecom Corp (HKSE:0728.HK - News; NYSE:CHA - News), China's biggest fixed-line carrier, according to other sources who spoke on condition of anonymity. |
