Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (11961)	6/9/2000 11:55:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 13582

Korea Telecom to take over Hansol M.com SEOUL, June 10 (Reuters) - State-run Korea Telecom said on Saturday it was nearing an agreement to take over mobile phone company Hansom M.com through a stake purchase and share swaps. ``We have recently resumed talks with Hansol and the deal is likely to be clinched early next week,'' said a company spokesman. Hwang Woo-yeon, a director in Hansol M.com's PR division, said the two sides were expected to make an announcement as early as Monday. ``It's almost a done deal,'' Hwang said. ``As far as I know, Korea Telecom has asked for government approval and is waiting.'' Local media reports said the Ministry of Information and Communication had demanded Korea Telecom come up with a plan to speed up its privatisation efforts, including forging strategic tie-ups with foreign telecom companies as a condition for the go-ahead. Hansol M.com, the smallest of Korea's five mobile service providers, said in early May its talks to sell a controlling stake in the company to two of its competitors, Korea Telecom and the LG Group [LUGG.CN], had broken down due to differences over prices. Korea Telecom has a mobile telecom affiliate, Korea Telecom Freetel , which has about five million subscribers. LG also has a mobile telecom unit. If successful, Korea Telecom would acquire a total of 49.84 percent of Hansol M.com from its three major shareholders -- Bell Canada International Inc (BCI) (Toronto:BI.TO - news), Hansol Group and American International Group Inc (AIG) (NYSE:AIG - news). Bell Canada International holds 20.97 percent of the Korean mobile company and AIG 13.98 percent. The Hansol Group holds 14.89 percent. Hwang at Hansol M.com said Korea Telecom was expected to offer cash and some of its shares in SK Telecom , the country's top mobile phone service provider. Korea Telecom is SK Telecom's second largest shareholder with a 17.86 percent stake in it. Local media reports said Korea Telecom would pay between 37,000 won ($33.2) and 40,000 won ($35.9) for a Hansol M.com share. But officials at both companies said the price has yet to be determined. Hansol M.com shares closed on Friday at their daily limit high of 31,500 won. Analysts said a takeover of Hansol would afford Korea Telecom a better chance of getting a licence for IMT-2000, an improved next-generation mobile service, which the government is scheduled to award this year. Sector consolidation has been spurred by mobile sector leader SK Telecom's acquisition of its competitor Shinsegi Telecomm Inc in late April. Korea Telecom closed up 1,000 won at 102,500 on Friday and Korea Telecom Freetel dropped 3,400 won at 85,600. SK Telecom climbed 22,000 won to 399,000. ($1 equals 1,115 won)