TOT, CAT fail to reach deal
TOT Plc and CAT Telecom Plc have failed to conclude a deal that would pave the way for TOT to buy CAT's stake in their joint-venture cellular operator, Thai Mobile, because of a disagreement over the share price.
Kraisorn Pornsutee, permanent secretary of the Information and Communications Technology Ministry, said yesterday that CAT had asked for Bt3.5 billion for its stake in Thai Mobile, while TOT had proposed Bt1.31 billion. TOT owns 58 per cent of Thai Mobile. CAT owns the rest. Kraisorn, who chairs the panel overseeing the sale of CAT's stake, said the panel had decided to ask the two state agencies to adjust their offers. "They will both have to adjust their prices by next month, at which point we will seek approval for the new price quotes from the ICT Ministry," Kraisorn said. The two state agencies started talking about the deal a few years ago. CAT plans to spend the money it earns from the deal to further develop its Code Division Multiple Access 2000 1-x wireless broadband service. TOT wants to take over Thai Mobile from CAT to make its management more efficient. Thai Mobile's key asset is its 1900 MHz spectrum, which has the potential to be developed to offer wireless broadband services. In addition to making an offer for CAT's share in Thai Mobile, TOT has proposed to CAT that it would be willing to shoulder Thai Mobile's Bt3 billion-to-Bt3.5 billion debt. Thai Mobile currently has 120,000 subscribers. Telecom Reporters, The Nation
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