Reasons that China Mobile renounced Millicom

Reasons that China Mobile renounced Millicom
8/8/2006， Reported by local press, In a board meeting in Beijing on July 2nd, directors of China Mobile vetoed the purchase of Millicom International Cellular S.A. ("Millicom")  finally on 5.3billion USD by China Mobile. Surprised by this result, and angried by new price talk suggested by China Mobile , Millicom then announced the end of M&A talk on the next day. Millicom announced to terminate all discussions concerning a potential sale of the entire share capital of the Company. And they pointed China Mobile would not be in a position within an acceptable timeframe to make a binding offer that was suitably attractive, given the current strong performance of the business, or sufficiently certain of closing.

About the reasons why China mobile renounced Millicom, the same article pointed out the field investigation to Millicom by China mobile was the main reason. In mid June, China Mobile send out a 15 experts group including lawer, banker and advisers, to all the countries Millisom provide service to made investigation. The group found they didnot understand Millicom at all, they even didnot know the basic information about Millicom。 Just after this investigation, China Mobile found maybe they choosed a wrong purchasing object. There will be great risks on operating in thouse countries Millicom provide services.