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HONG KONG: The mainland's powerhouse mobile carrier China Mobile said it has no intention to seek control of Far EasTone and said it would go forward with plans to seek approval to buy 12 percent of the Taiwan company.

"China Mobile reiterates that when this investment is approved, after China Mobile becomes a Far EasTone stakeholder, we won't participate in the company's daily business administration, and won't pursue a controlling interest," China Mobile said in a statement released yesterday.

"Industry watchers, the media and ordinary shareholders have all been very positive about China Mobile's move to buy a stake in Far EasTone," the statement said. "We hope the relevant authorities will be able to introduce regulations that will allow for the deal to move forward smoothly."

Far EasTone said Wednesday it expects to complete the deal by early next year.

The two companies announced their landmark tie-up in April, saying China Mobile would pay $529 million for a stake.

Since then, however, some industry executives and opposition lawmakers have argued against opening up the telecoms sector to mainland investors since the industry is seen as a sensitive area.

Taiwan's telecom sector is not on the initial list of investments that will be opened to investors from the mainland. Observers say the opposition may move the government to delay that approval and that casts the whole China Mobile - Far EasTone deal in doubt.

Taiwan under the year-old Ma Ying-jeou administration has been gradually opening up to investments from the mainland as it seeks to revive its own economy amid the global downturn.

Reuters

(HK Edition 06/19/2009 page2)