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China Unicom, Telefonica agree on $1b shares swap

(Xinhua)
Updated: 2009-09-07 09:16

China Unicom (Hong Kong) Ltd said Sunday that it signed a deal with Telefonica, the Spanish telecom operator, to enhance their alliance by spending $1 billion each on share purchase.

China Unicom would acquire shares equal to about 0.885 percent to 0.892 percent of stake in Telefonica, according to the company's statement to the Shanghai Stock Exchange.

Related readings:  China Unicom's H1 profit down 42.1%, to sell iPhone in China  China Unicom invests 20b in Shanghai to expand network  China Unicom takes a bite of Apple pie

Telefonica would increase its stake in China Unicom from 5.38 percent to 8.06 percent, the statement said.

Their cooperation would focus on infrastructure and equipment purchase, mobile service platforms, research and development, and service provision to multinational clients, according to the deal.