Australia's Telstra Says Hong Kong Mobiles Unit Not For Sale

SYDNEY -(Dow Jones)- Telstra Corp. (TLS), Australia's largest telephone company, reiterated Tuesday that its Hong Kong mobiles unit CSL Ltd. isn't for sale.

Citing "people close to the situation" the Financial Times reported on its web site that China Mobile, the world's biggest mobiles company by subscriber numbers, may offer up to US$1.8 billion for the business.

The Financial Times report comes after speculation in Hong Kong and mainland Chinese newspapers that Telstra has been in talks to sell CSL, one of six operators in the highly competitive Hong Kong mobiles market.

"The current position is that it's not for sale," a Telstra spokeswoman told Dow Jones Newswires after being asked if the company will consider any offers.

The company usually refuses to comment on market or media speculation, but on the CSL issue has consistently said the business isn't for sale.

Telstra, which is 51.8% owned by the Australian government, bought CSL from PCCW (PCW) for US$2.2 billion in phases over 2000 and 2001 as part of an unsuccessful expansion into Asia led by outgoing chief executive Ziggy Switkowski.

The likelihood Telstra will be fully privatized in 2006, and the forced departure of Switkowski by July this year, has led some commentators to speculate the sale of Telstra's Asian assets is on the company's agenda.

-By Stephen Wright, Dow Jones Newswires;

61-2-8235-2950; stephen.wright@dowjones.com

-Edited by Ian Pemberton

(END) Dow Jones Newswires"

Posted to the site on 25th January 2005