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Hutchison denies stake report
Hutchison Whampoa Ltd (黃浦和記), Asia's biggest investor in European high-speed mobile-phone networks, rejected a Chinese-language newspaper report that the Hong Kong company held talks to buy a one-third stake in Taiwan Cellular Corp (台灣大哥大).

"We completely deny the report," Hutchison spokeswoman Nora Yong said, without elaborating.

Taiwan Cellular's shareholder and affiliate, Taiwan Fixed Network Ltd (台灣固網), plans to sell 33 percent of the mobile-phone operator as part of moves to unwind cross-shareholdings, reorganize and attract investors.

Taiwan Cellular may seek other potential investors such as Vodafone Group Plc of the UK and Telstra Corp of Australia, the report said, citing Taiwan Cellular Acting Chairman Daniel Tsai (蔡明忠).

According to Tsai, the company is looking for foreign strategic investors and is willing to let the partner gain control of the company.

Hutchison, controlled by billionaire Li Ka-shing (李嘉誠), is investing US$16.7 billion with its partners to start high-speed mobile-phone services in nine countries.

Air-show sales predicted
Defense officials said yesterday they hope to increase sales of Taiwanese military hardware at an air show in Taipei later this week.

Military official Liu Li-tsung said Taiwan hoped to rack up NT$18.3 billion (US$532 million) worth of business at the seventh Taipei Aerospace Technology Exhibition, which opens tomorrow.

Liu said the Sky Sword 2 and Hsiung Feng 2 missiles, and the M6-OA3 tank would be among the equipment on offer.

Boeing, Raytheon, Bell, Lockheed Martin and Northrop Grumman, as well as Rolls Royce and Dassault Aviation are also participating in the show, said an official at the China External Trade Development Council. The air show ends Sunday.

Coca-Cola moves into tea
Seeking to attract young and health-conscious consumers, US soft drink giant Coca-Cola has ventured into Taiwan's growing cold-tea beverage market.

Coca-Cola began selling two bottled tea drinks this week under the brand of its Taiwanese partner Ten Ren Tea (天仁), Jason Wu (吳國昇), president of Coca-Cola's Taiwan branch, said yesterday.

Ten Ren is the nation's biggest producer and retailer of tea leaves.

While older Taiwanese still prefer to sip hot tea the traditional way, bottled tea drinks are increasingly popular among younger people. Last year, sales of bottled tea drinks totaled NT$13.5 billion (US$390 million), nearly 40 percent higher than that of sodas.

MOF greenlights bond sale
The Ministry of Finance yesterday gave its go-ahead to the Credit Lyonnais SA's (法國里昂信貸銀行) application for sales of bonds backed by its NT$8.8 billion-worth corporate loans and NT$40 million-worth liquid reserves on the secondary market.

"This will be the nation's first of its kind securitization plan on corporate loans," said Thomas Huang (黃天牧), deputy director-general of the ministry's Bureau of Monetary Affairs, at a press conference yesterday.

Huang added that the French bank's project is still pending an approval from the Securities and Futures Commission to finalize its interest rates for the bonds and beneficiary certificates, to be issued by the Grand Commercial Bank (萬通銀行) and traded by the Grand Cathay Securities Co (大華證券) in the near future.

NT dollar maintains strength
The New Taiwan dollar yesterday maintained strength against its US counterpart, up NT$0.007 to close at NT$34.382 on the Taipei foreign exchange market.

Turnover was US$225 million.

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