China Mobile's Far EasTone plan may be blocked

1 May 2009

China Mobile’s plan to acquire a 12% stake in Taiwanese operator Far EasTone (see CommsUpdate yesterday) may be dashed after Taiwan’s regulator the National Communications Commission stated that the cellco belongs to a category of companies in which mainland Chinese ownership is disallowed. Far EasTone Chairman Douglas Hsu remains hopeful, however, saying that his company will seek approval for the deal after the company’s annual general meeting (AGM) in June, with the deal to be completed by the fourth quarter. Hsu added that China Mobile won’t be seeking to take management control of Far EasTone, preferring instead to act only as an investor.

Taiwan, China Mobile, Far EasTone (FET)