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Message from discussion Latest Telco Update
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geowo...@gmail.com  
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 More options Jun 6 2008, 1:39 pm
From: geowo...@gmail.com
Date: Fri, 6 Jun 2008 10:39:50 -0700 (PDT)
Local: Fri, Jun 6 2008 1:39 pm
Subject: Re: Latest Telco Update
Right, China Unicom is buying Netcom with stock, giving Netcom ADR
holders a fraction more than 3 to 1 for their stock. That means
Netcom's value is now tied directly to Unicom's stock value.
China Telecom has to buy its potion of Unicom's CDMA business for $16
billion and has to find a lot of capital. That means potential
dilution or debt. I'd be wary of this one.
The new Netcom/Unicom has pretty good growth potential, given the
Chinese government's determination to break the China Mobile near-
monopoly. I'd be wary of CHL.
Netcom/Unicom seems like a hold until things clarify. IMHO
Checking out China Stock Digest

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