China Mobile Denies Break-Up Reports

China Mobile's Chairman, Wang Jianzhou has refuted a report in a research note which had suggested that the company could be broken up by the Chinese government. The government is widely expected to reshuffle the telecoms market prior to awarding 3G licenses next year.

"An investment bank's report said China Mobile would be broken up. That aroused my concern as that was wrong," Wang told the Hong Kong Standard newspaper.

According to a JPMorgan report, Wang told investors his biggest concern about government intervention in the telecoms restructuring was that China Mobile would be broken up.

"I believe the government will only consolidate the telecom industry by having smaller operators merging with larger companies to increase their competitiveness in the international arena," said Wang.

He stressed China Mobile will only be "stronger and bigger."

On the web: The Standard

Posted to the site on 11th November 2007