China Unicom and Telefonica to form strategic alliance
China Unicom and Telefonica have entered into a strategic alliance agreement pursuant to which the parties agreed that they would cooperate in infrastructure and equipment, development of wireless service platforms, services to multinational enterprises, roaming, R&D, as well as technical, operational and management expertise.
Under the agreement, both companies agreed to invest the equivalent of US$1 billion in the other party through the acquisition of each party's shares, and the share price for the subscription is the average of closing share prices of each party on the Hong Kong Stock Exchange and the Madrid Stock Exchange respectively for the 30 consecutive trading days ending on August 28, 2009. After the completion of the transaction, China Unicom's shareholding in Telefonica will be approximately 0.88% and Telefonica's shareholding in China Unicom will increase to approximately 8% from 5.38%.
Telefonica chairman Cesar Alierta said, "This alliance, which will bolster both of our companies' leadership positions, giving us a combined global customer base of nearly 550 million."
Under the agreement, both companies agreed to invest the equivalent of US$1 billion in the other party through the acquisition of each party's shares, and the share price for the subscription is the average of closing share prices of each party on the Hong Kong Stock Exchange and the Madrid Stock Exchange respectively for the 30 consecutive trading days ending on August 28, 2009. After the completion of the transaction, China Unicom's shareholding in Telefonica will be approximately 0.88% and Telefonica's shareholding in China Unicom will increase to approximately 8% from 5.38%.
Telefonica chairman Cesar Alierta said, "This alliance, which will bolster both of our companies' leadership positions, giving us a combined global customer base of nearly 550 million."
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