Telefónica and China Unicom sign 3G Pact

Following the restructuring of the Chinese telecom industry and the granting of 3G licenses, Telefónica and China Unicom have agreed to develop integrated and mobile and 3G services.
In addition, the agreement covers a wide number of areas of collaboration such as developing innovative services, international business, joint procurement of network equipment, devices and handsets , platforms for innovative and advanced services, and services to corporate customers, among others.

China Unicom is the result of the merger between China Netcom (CNC) and China Unicom. In the wake of sector restructuring in China, Telefónica has become a key partner and the largest private investor (with a 5.38% stake) in the new China Unicom, an integrated operator with approximately 260 million fixed telephony, wireless and broadband subscribers. César Alierta, Chairman of Telefónica, is a non-executive member of the Board of Directors of the new China Unicom.
http://www.telefonica.eshttp://www.chinaunicom.com.hk

• In September 2008, Telefónica announced an agreement with AllianceBernstein to acquire an additional stake of up to approximately 5.74% of the share capital of the China Netcom. The acquisition will be structured in two tranches, (i) the first tranche will be in respect of shares representing approximately 2.71% of the issued share capital of CNC as of the date hereof, and (ii) the second tranche will be in respect of a number of shares in CHINA UNICOM LIMITED (“CU”) issued after its merger with CNC in exchange of shares representing up to a 3.03% stake in CNC.