Telefonica to up stake in changing China market

Spain's Telefonica, one of the most internationally-acquisitive telcos, said it wants to invest about $1.16 billion in a new company that will result from the planned merger of China Netcom Group and China Unicom. Telefonica already owns a 5 percent stake in China Netcom and is looking obtain a 5.5 percent piece of the new firm.

The move comes as the Chinese telcom market is rapidly being reshaped by a government program that is matching wireless properties with the country's tradition landline telcos, such as China Netcom and China Telecom. Will other international telcos join China's party? (No, not that party...)

For more:
- read this story at The Wall Street Journal

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