China Telecom eyes Excelcomindo: sources

China Telecom eyes Excelcomindo: sources

Dow Jones
Hong Kong

China Telecom Group, parent of the Hong Kong-listed China
Telecom Corp., is in preliminary talks to buy a stake in
Indonesia's PT Excelcomindo Pratama, sources familiar with the
situation said on Wednesday.

"It's just talks at the parent company level, not related to
the listed unit," said one of the sources, who spoke on condition
of anonymity.

"(The talks) are still s further evidence that mainland
China's telecom giants are increasingly enthusiastic about
expanding their customer base overseas.

China United Telecommunications Corp., China's second-largest
mobile carrier and parent of China Unicom Ltd., is considering
investing in a code division multiple access joint venture in a
neighboring emerging market within the next two years, Chairman
Wang Jianzhou said in August. Potential targets include
Indonesia, India and Vietnam.

Back in January, China Netcom, the smaller of China's fixed-
line duopoly, formed a consortium with two investment firms to
take over the assets of Asia Global Crossing Ltd., an affiliate
of bankrupt U.S. telecoms network operator Global Crossing Ltd.

Two weeks ago, Excelcomindo launched a Rp 1.25 trillion
(US$148 million) five-year bond to raise funds to refinance some
of its offshore borrowings and improve its network coverage. The
Indonesian company has around 16 percent of the country's
cellular market.

Excelcomindo shareholders are Indonesia's PT Telekomindo
Primabhakti, which holds 60 percent, U.S.-based Verizon
Communications, which holds 23.1 percent through Nynex Indocel
Holding Sdn.; Asia Infrastructure Fund Ltd., with 12.7 percent;
and Japan's Mitsui & Co. Ltd. with 4.2 percent.