KT stock rises on wireless takeover rumour

Shares in KT Corp have risen sharply on rumours that it may take over its wireless subsidiary KT Freetel (FTF), in which it has a 52% stake, earlier than expected. Analysts have predicted since November that further consolidation will take place in South Korea’s telecoms industry, after SK Telecom, the nation’s largest cellco, won the right to buy a controlling stake in ISP Hanaro. SK Telecom last month signed an agreement to buy a 39% stake in Hanaro for KRW1.09 trillion (USD1.1 billion).