Opening lines; China's grudging nod toward deregulation has prompted a flurry of joint ventures between foreign and local firms

Article Abstract:

Many western telecommunications companies are looking to China as a way to expand their markets. There are 1.3 billion people in China and only 62 million installed telephones, or one for every 21 people. These companies are forming joint ventures to provide China with a variety of telecommunications services, but the country's move to deregulation has been a slow process. The Ministry of Posts and Telecommunications is grudgingly loosening its control over the market. China ended its ban on foreign ownership of its networks in 1995, but still requires Chinese companies to operate them. The foreign companies are willing to deal with the legal restrictions in the belief that the first companies to enter this market will have the advantage when China actually opens up its markets. The hope is that their initial investments will reap huge financial rewards in the long term.

China, Forecasts and trends, Investments, Telecommunications systems, Market trend/market analysis, Market Entry

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AT&T Corp. agrees to buy Vanguard Cellular

Article Abstract:

AT&T will acquire Vanguard Cellular Systems, an independent cellular telephone company, in a deal valued at $900 million. Vanguard's stockholders will have an option to exchange each share for either $23 in cash or 0.3987 share of AT&T, or a combination or the two. The offer amounts to a premium of about 16% compared with Vanguard's stock price on Oct 2, 1998. When the acquisition agreement was announced, on Oct 5, Vanguard's shares rose 7.2%, or $1.4375, to $21.3125. Meanwhile, AT&T's shares fell 1.8%, or $1.0625, to $57.5625. Because of regulatory requirements, AT&T will have to sell some wireless licenses that cover areas that overlap Vanguard's. The deal is expected to close in 1st qtr 1999.

Mergers, acquisitions and divestments, Company acquisition/merger, Cellular telephone services industry, Cellular telephone services, AT&T Corp., T, Vanguard Cellular Systems Inc., VCELA

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