Hong Kong-listed VTech Holdings is in talks with the mainland's No 1 personal computer maker Legend Holdings and retail giants Wal-Mart and Carrefour on distributing the AT&T-brand cordless phones it makes in China, according to a source familiar with the negotiations. Analysts said VTech, the world's largest cordless wired phone-maker by some estimations, was keen to tap Legend's extensive distribution network to help it open up the young but potentially large mainland market. The move reflects the huge competition in the mainland's consumer goods sector, and the attempts that companies are making by forming alliances to cement their position. The news comes after VTech's announcement on Saturday that it has been granted the exclusive right to make and distribute AT&T cordless wired phones in Greater China. The source said VTech was under pressure to form partnerships with companies with extensive mainland distribution networks and strong brands, after China's leading electrical-appliance maker Haier and locally listed cordless and mobile-phone maker CCT Telecom signed a distribution pact in December. Since the beginning of the year, it has seen CCT's cordless wired phones being distributed under the Haier brand by Haier-CCT Holdings, a mobile-phone and telecommunications equipment joint venture. CCT was the world's largest producer of cordless wired phones by units, but VTech was the biggest by dollar sales as it focused on higher-end products, an analyst said. For a number of years, CCT has been designing and making cordless wired phones under the General Electric (GE) brand for United States-based retailer Atlinks. The phones were distributed by Atlinks in China, a CCT official said, but could not comment on whether the distribution relationship would be extended to cover GE phones as well. Yesterday, a VTech official said there was nothing to announce at the moment. A Legend official was unaware of any VTech talks. Late last month, VTech chairman Allan Wong Chi-yan denied speculation that the company was in talks to allow Legend to become a strategic shareholder. But he mentioned the company had more than 10 years of co-operation in selling VTech-made personal computers in the mainland. He did not dismiss future co-operation with the personal-computer giant. At that time, he also said VTech was studying the feasibility of selling its products on the mainland to retailers such as United States-based Wal-Mart and French company Carrefour. The company has set a target to source 15 per cent of its revenues from China in five years and 30 per cent of revenues in 10 years.