SK Telecom: Denies Talks With Virgin Mobile Over Helio Sale
SEOUL -(Dow Jones)- South Korea's SK Telecom, Saturday said it isn't in talks with Virgin Mobile USA over a possible sale of Helio, its U.S. wireless service affiliate.
"We're not in any sort of talks with Virgin Mobile," company spokeswoman Mina Ryu said. "Helio also isn't in talks with Virgin Mobile. We're committed to Helio."
She was responding to a report by mocoNews.com, an online mobile content blog, that Virgin and Helio were in talks to merge. One scenario involved SK Telecom buying Virgin Mobile and infusing it with cash, and then Virgin Mobile buying out Helio in an all-stock deal, according to the report.
"The report is groundless," Ryu said in Seoul Saturday.
But she said SK Telecom is actively seeking opportunities to expand its business in the U.S.
As the South Korean wireless-service market nears saturation, SK Telecom, which controls slightly more than half of the Korean market, has been aggressive in pursuing overseas projects.
Helio, an unprofitable joint venture with EarthLink, has been struggling with a muddled brand in the highly competitive U.S. wireless market.
By In-Soo Nam, Dow Jones Newswires; 822-721-0583; In-Soo.Nam@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 10th May 2008