To: Caxton Rhodes who wrote (32982 ) 6/23/1999 12:33:00 PM From: JohnG Respond to of 152472
Claxton--China Unicom wants to list in NY & Hong Kong. If this happens the money for a quick build out should be available and Q will probably be in the thick if supplying phones & chips. China Unicom Targets $1 Billion From Hong Kong, New York Listings SHANGHAI, Jun 22, 1999 -- (Agence France Presse) China United Telecommunications Corp. (Unicom) is seeking to list its shares for the first time simultaneously in Hong Kong and New York, the official Laodong Daily reported Tuesday. "The primary target is (to raise) $1 billion," it said, of which seven billion yuan ($843 million) would be used to expand the company's mobile phone business. The service provider, a fledgling rival to the giant former monopoly China Telecom, is already undergoing assessment by unnamed foreign banks and is in negotiations with foreign investment banks regarding the prospective stock issue. The newspaper indicated the plans were awaiting a go-ahead from "related departments" of government -- likely a reference to the China Securities Regulatory Commission. At the start of the month, a company spokesman said Unicom had been planning to list "for a long time" and had not yet reached a final decision on where it would offer shares. Unicom -- which has around a seven-percent share China's cellular market and has struggled to launch fixed-network services -- exploited its image as David taking on the Goliath to pull in some $1.4 billion in indirect foreign investment in the early going. But that image came into question last year when government reforms put both firms under the control of the same "parent," the newly created Ministry of Information Industry. Unicom's distinctive position in the telecoms sector could soon erode into that of an also-ran, as Premier Zhu Rongji has announced intentions to dramatically boost competition in the sector and split up China Telecom into at least four companies. ((c) 1999 Agence France Presse) John G