China Unicom: No Negotiations on Acquisitions

HONG KONG -(Dow Jones)- China Unicom said Friday it isn't in any acquisition talks, after its shares rose sharply on a report of a restructuring of the country's telecommunications sector involving a series of mergers.

At the midday break, the company's Hong Kong-listed shares were up 6.1% at HK$18.58, compared with a 0.1% gain on the benchmark index.

"We have noted today's increases in the price and the trading volume of the shares of the company and wish to state that we are not aware of any reasons for such increases," China Unicom said in a statement.

The South China Morning Post reported Friday, citing unnamed sources, that the planned revamp of China's telecommunications sector will include a series of "mega mergers" and a reshuffle of senior executives.

-By Lorraine Luk, Dow Jones Newswires; 852-2802-7002; lorraine.luk@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 11th January 2008