China Netcom in talks to sell assets to parent

SHANGHAI, Jan 9 (Reuters) China Netcom Group Corporation (Hong Kong) Ltd. is in talks with its parent company to sell it fixed-line assets and operations.

The assets under discussion are in China's southern Guangdong province and in Shanghai municipality, the listed company said in an announcement late on Monday.

''No definitive agreement in relation to the transaction has been entered into and the transaction may or may not proceed,'' the statement said.

Any agreement between the listed company and its parent, China Network Communications Group Corporation (China Netcom Group), would require approval from shareholders and the Chinese authorities, the statement added.

Shares in China Netcom have surged 43 percent in the past three months, compared with a near-12 percent rise in Hong Kong's benchmark Hang Seng Index <.hsi>.

Reuters DKS VP0625