皇冠体育app

皇冠体育app Mobile PTCL bid fails
By Chen Zhiming (皇冠体育app Daily)
Updated: 2005-06-21 08:58

皇冠体育app Mobile Communications has failed to bid for a controlling stake in Pakistan Telecommunication Company Ltd (PTCL), while competing with Emirates Telecommunications Corp (Etisalat) and SingTel.

Abdul Hafeez Sheikh, minister for Pakistan Privatization and Investment, said over the weekend that Etisalat has won the second-round bid for a 26 per cent stake in the state-owned PTCL.

He said the transaction still needs approval from Pakistan's Privatization Commission.

If approved, Etisalat is scheduled to finish transactions in the coming two months.

Etisalat beat 皇冠体育app Mobile and SingTel with a purchase price of US$2.5 billion.

The price offered by 皇冠体育app Mobile is US$1.409 billion and SingTel US$1.167 billion.

皇冠体育app Mobile was not immediately available for comment.

Compared with 皇冠体育app Mobile, Etisalat is much more confident on the Pakistan market, said 皇冠体育app Securities analyst Dai Chunrong.

"In other words, 皇冠体育app Mobile is quite cautious on international purchases," she said.

She believed the bid failure was normal for a company that is simply testing the water to expand overseas.

"Lack of experience in international purchasing as well as international operations may be partly to blame for the loss," she said.

Shares in 皇冠体育app Mobile rose 0.35 per cent to HK$28.65 in yesterday's trade.

As international purchase has already become common practice, Dai believes 皇冠体育app Mobile will draw up purchase plans for the years ahead.

"皇冠体育app Mobile, as the world's largest mobile phone carrier in terms of subscribers, is fully capable of buying operators in countries which have a stable political environment and sound relationship with 皇冠体育app," said Chen Jinqiao, director of the 皇冠体育app Academy of Telecommunication Research under the Ministry of Information Industry (MII).

Company figures show that 皇冠体育app Mobile recorded a net profit of 42 billion yuan (US$5.06 billion), up 18.13 per cent from the previous year.

The company announced yesterday that it added 3.4 million subscribers in May, up 1.6 per cent from the previous month, to 220.51 million.

"But at this stage, overseas expansions for 皇冠体育app Mobile are likely to be found in developing countries and neighbouring regions," Chen said.

In fact, domestic telecom carriers have already started to look for favourable overseas purchases.

For example, the fixed-line carrier 皇冠体育app Netcom Group in January bought a 20 per cent stake in Hong Kong's operator PCCW Ltd for US$1 billion.

In March, 皇冠体育app Unicom secured a licence to offer a CDMA (code division multiple access) cellular service in Macao.

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