China United Network Communications Limited (SHSE:600050) and China Telecom Corp. Ltd. (SEHK:728) denies possible merger. China United Network Communications Group and China Telecommunications inked a strategic resource-sharing deal on January 13, 2016, dispelling rumors of a possible merger between the two firms. Under the pact, China Unicom and China Telecom will share resources to jointly build networks, explore
innovative Internet businesses, as well as negotiate international roaming rates. Yang Jie, General Manager of China Telecom, said, “The agreement has nothing to do with industry restructuring or any merger of China Telecom and China Unicom.” Yang Jie said the deal will also involve capital cooperation, but did not offer any further details.