TAIPEI -(Dow Jones)- Taiwan Mobile plans to sell its entire 2% stake of 200 million shares in Chunghwa Telecom, Taiwan Mobile's Chief Financial Officer Hui-Ming Cheng said Monday.
Cheng declined to give a reason for the share disposal.
He said no decision has been taken on the date of the sale, or whether the shares would be sold domestically or overseas.
"There are many factors to consider, including the price," Cheng said.
"However, if we want to sell (the shares) overseas, there is a problem of a 40% limit on foreign ownership, so we can sell only about 80,000 shares," Cheng said.
Foreign ownership in any state-owned telecommunications company cannot exceed 40%, said Chunghwa Telecom's investor relations manager, Shen Fu-fu, adding the limit still exists even though Chunghwa was privatized.
Shen declined to comment on Taiwan Mobile's share sale.
As of Friday, foreign ownership of Chunghwa Telecom shares was 39.26%, leaving 70,589 shares free for foreign ownership.
-By Alex Pevzner, Dow Jones Newswires; 8862-2502-2557; alex.pevzner@dowjones.com
-Edited by Theresa Davidovitz
(END) Dow Jones Newswires "
Posted to the site on 23rd January 2006
Posted to: www.cellular-news.com/story/15718.php