China Mobile is discussing a multi-billion dollar deal to buy eight mainland mobile phone networks from its parent.
The mainland's biggest mobile phone operator - with 65.7 million subscribers in October - last night said it was talking with parent, China Mobile Communications, about buying networks in central and northern China.
The company, which has Hong Kong-listed H shares, did not say how much the deal was likely to cost but observers said it could be worth about US$13 billion.
Analysts speculated China Mobile could become the first company to utilise a new fund-raising method designed to enable foreign businesses to tap mainland funds - China Depository Receipts (CDRs).
As an H share, China Mobile is not allowed direct access to mainland markets. CDRs enable foreign companies to sell shares dominated in yuan to Chinese investors.
'The company may explore PRC domestic equity financing, but no financing plan has been finalised at this stage,' China Mobile chairman Wang Xiaochu said.
