Purchase of 35 million shares a day after PCCW takeover bid lifts interest to 9.9pc Huawei Technologies raised its stake in Sunday Communications a day after PCCW announced its takeover bid for the mobile-phone company. This could signal the mainland networking equipment giant was not interested in selling its stake in Sunday when PCCW made its mandatory general offer, analysts said. On June 14, Huawei spent $22.4 million on 35 million Sunday shares at 64 cents each - one cent lower than PCCW's offer price - according to data released by Hong Kong Exchanges and Clearing yesterday. The purchase increased its stake in Sunday from 8.74 per cent to 9.91 per cent. If Huawei accepts PCCW's offer, it will make only $350,000 profit on the 35 million shares it just bought. PCCW announced on June 13 that it would buy Distacom's 46.2 per cent stake in Sunday - Hong Kong's smallest mobile operator - and USI Holdings' 13.72 per cent interest. It offered 65 cents a share - a 22.6 per cent premium to Sunday's last closing price of 53 cents before the announcement of PCCW's offer. This triggered a mandatory general offer by PCCW to buy all the shares it does not hold at the same price. Huawei's spokesman would not comment on the intention behind the latest Sunday stake purchase. Tung Tai Securities research director Kenny Tang Sing-hing said it was unlikely that Huawei was buying the shares purely for profit. 'I think it wants to foster a closer relationship with PCCW as it is keen to sell equipment to PCCW's mainland strategic partner China Netcom, which is looking to develop 3G business,' Mr Tang said. 'At the moment, Sunday is Huawei's first customer worldwide for 3G products but Huawei's ultimate target is the mainland market.' Mr Tang said Huawei's shares purchase also indicated it was optimistic about Sunday's long-term prospects. 'Sunday's operating efficiency should be better with a big operator behind it,' he said. Sunday's shares have closed at 63 cents for the past five trading days.