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China Mobile reiterates no plan to control Far EasTone

Thu Jun 18, 2009 1:29am EDT

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HONG KONG, June 18 (Reuters) - China Mobile (0941.HK), China's dominant mobile carrier, on Thursday said it has no intention of taking control of Far EasTone (4904.TW) if its controversial plan to buy 12 percent of the Taiwan company is approved.

"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 controling interest," China Mobile said in a statement

China Mobile made the remarks as its plan to buy 12 percent of Far EasTone, one of Taiwan's top three mobile carriers, faces potential obstacles in Far EasTone's home market.

The two companies announced their landmark tie-up in April, saying China Mobile would pay $529 million for the stake. Since then, however, many have cast doubt on he plan, which is technically still not allowed because of restrictions on investments in Taiwan by Chinese companies. (Reporting by Doug Young; Editing by Chris Lewis)



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