Taiwan Cellular Corp (台灣大哥大), the nation's biggest mobile phone company, said it is "in contact, but not in talks" with rival TransAsia Telecommunications Inc (泛亞電信) regarding a merger plan.
"The company has always been interested in TransAsia, just like other market players, but there have been no negotiations regarding such an acquisition," said Joseph Fan (
The company also said it is not in merger discussions with Voda-fone Group Plc, the world's No. 1 mobile phone service provider. Vodafone is a potential partner in a three-way merger that would include one foreign company, according to a Chinese-language media report that cited unidentified industry executives.
A merger with TransAsia would help Taiwan Cellular prepare for the licensing of new high-speed mobile Internet services in Taiwan later this year.
Taiwan Cellular said it began negotiations with Goldman Sachs Group Inc to buy TransAsia following the end of talks between TransAsia and Far EasTone Telecommunications Co (
In the last two months, NTT DoCoMo Inc, Asia's largest mobile phone service provider, purchased a stake in KG Telecommunications (
Fan said that this year, Taiwan Cellular will give priority to offering shares overseas, introducing new data services and tracking developments in Taiwan's 3G licensing process.
The company plans to issue depository receipts in the second half of the year, according to William Newton, vice president of the company.
Taiwan Cellular reported unaudited pre-tax profit of NT$14.4 billion (US$440 million) on revenue of NT$45 billion for the year ended Dec. 31, 2000.
As for the company's business turnover for this year, Fan said Taiwan Cellular is expected to make a profit of NT$18 billion in 2001, up 25 percent from last year.
Taiwan Cellular is currently the largest mobile phone operator in Taiwan, accounting for 29 percent of the domestic market, according to statistics compiled by the Directorate General of Telecommunications (
Chunghwa Telecom (中華電信) is the second-largest mobile phone operator, while Far EasTone and KG Telecom rank third and fourth largest, respectively.
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