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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: foundation who wrote (8028)	3/2/2001 7:43:16 AM
From: foundation	Respond to of 197426

KT's Alleged Plan to Sell SKT Shares Create Problems By Nho Jun-hun Staff Reporter Rumors of a decision by telecommunications giant Korea Telecom (KT) to dispose of some of its shareholding in SK Telecom (SKT) is feared to cause problems not only for the stock market but also for SKT. Securities analysts said yesterday that KT has all but confirmed the sales of its SKT shares, although the exact volume and timing of the disposal are yet to be known. ``While it is unlikely that the shares will be released directly into the stock market, there are concerns about the adverse effects it will have because of the weight that SKT shares carry,'' said one analyst of Mirae Asset Securities. If converted into the stock quotation at closing Wednesday, KT's shareholding in SKT is worth 2.5 trillion won, enough to heavily weigh down a market that is already struggling. On the other hand, the availability of SKT stock in the market will mean that foreign investors will have a better shot at increasing their holdings, and KT could very easily dispose of its shares overseas. The more serious problem concerning the projected sales of KT's stockholding in the leading mobile communications company is its ongoing negotiations with NTT DoCoMo. ``As it stands, there are difficulties in finalizing negotiations with NTT DoCoMo due to the sheer size of the deal, and the release of significant shares of SKT cannot improve the situation,'' the analyst said. SK Corp. and SK Global have transferred a combined 14.5 percent of SKT's shares to Signum IX, an investment broker based in Singapore which is currently negotiating on SKT's behalf with NTT DoCoMo as well as other potential strategic partners. ``If KT insists on disposing of large portions of its shares in SKT, it will inevitably delay negotiations for SKT's strategic partnership with foreign companies,'' the analyst said. Unconfirmed sources at KT said the company was considering disposing of its stockholding in SKT to raise funds to finance future investments, including the launching of the IMT-2000 (International Mobile Telecommunication) service here next year. ragingbull.lycos.com