Strategic Alliance signed by China Netcom and Telefonica Internacional S.A.
"China Netcom Group Corporation (Hong Kong) Limited (...) is pleased to announce that it formally entered into a Strategic Alliance Agreement ("SAA") with Telefonica Internacional S.A. on 14 November 2005."
"The SAA will become effective after the completion of the acquisition of the additional shares by Telefonica, representing the difference between the existing stake of 5 percent of the outstanding issued Shares held by Telefonica and 9.9% of the entire issued share capital of the Company outstanding from time to time (...).
"The agreement allows Madrid-based Telefonica to strengthen its partnership with Netcom in China, the world's largest phone market by users. The nation had 373 million cell-phone subscribers and 342 million fixed-line users at the end of August. The two companies signed an agreement yesterday during Chinese President Hu Jintao's visit to Spain, which produced contracts worth 900 million euros ($1 billion).
"Telefonica, which provides services to 140 million customers worldwide, will get one board seat with its existing 5 percent stake and a second seat once its interest increases to 9.9 percent, the statement said. The Spanish company's board representatives can sit on any committee of Netcom. ""
Telefónica Buys Stake in China Netcom
China Netcom, Telefonica SA Establish Strategic Alliance