China Telecom denies plan to buy stake in MTN

17 Nov 2006

China Telecom denied it is planning to buy a stake in South African mobile operator MTN Group, a Dow Jones report said.

The Dow Jones report said an article, which appeared in South African newspaper Business Report, cited unnamed industry sources as saying China Telecom was preparing to bid for MTN Group and that could explain the recent gains in MTN's share price.

Reuters quoted a China Telecom spokesman "We have denied the report," as saying.

As foreign telecommunications operators seek to move into China, Chinese carriers are seeking to expand overseas as part of Beijing's drive for local companies to grow internationally, the report said.

China Telecom said in September it had set up China Telecom Europe to provide communications and networked IT services to Chinese business customers looking to move into Europe, and to European businesses expanding into Asia.

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