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China condemns Canada’s arrest of Huawei’s CFO

by UNTV News   |   Posted on Friday, December 7th, 2018

 

Meng Wanzhou, chief financial officer of Huawei | REUTERS

China condemns the arrest of Meng Wanzhou, chief financial officer(CFO) of China’s tech giant Huawei, in Canada, Chinese embassy said in a statement on Wednesday.

It said Meng has committed no crime and that the arrest is a violation of her human rights; China urges both Canada and United States to “immediately correct the wrongdoing”.

Meng was arrested on December 1, and a bail hearing has been scheduled for Friday, according to the Canadian side.

In a statement, Huawei said Meng was arrested while transferring between flights in Canada, and is facing an “unspecific accusation”.

The company said it has been provided very little information regarding the charges and is not aware of any wrongdoing of Meng. — Reuters

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Canadian court grants bail to CFO of China’s Huawei

by UNTV News   |   Posted on Wednesday, December 12th, 2018

 

Meng Wanzhou, chief financial officer of Huawei | REUTERS

A Canadian court on Tuesday (December 11) granted bail to a top executive of Huawei Technologies Co Ltd while she awaits a hearing for extradition to the United States, a move that could help placate Chinese officials angered by her arrest.

Meng Wanzhou, 46, Huawei’s chief financial officer and the daughter of its founder, faces U.S. accusations that she misled multinational banks about Iran-linked transactions, putting the banks at risk of violating U.S. sanctions.

Justice William Ehrcke at a court hearing in Vancouver, British Columbia, on Tuesday granted bail to Meng, subject to a guarantee of C$10 million ($7.5 million) and other conditions.

China had threatened severe consequences unless Canada released Meng immediately.

Meng was detained as part of a U.S. investigation on Dec. 1 as she was changing planes in Vancouver. — Reuters

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China expresses ‘serious concerns’ over Australia’s ban of Huawei from mobile network project

by UNTV News   |   Posted on Friday, August 24th, 2018

Huawei. REUTERS/Aly Song/File Photo

China on Thursday (August 23) expressed “serious concerns” over Australia’s ban of Chinese telecoms firm Huawei Technologies from supplying equipment for a 5G mobile network in the country.

Foreign ministry spokesman Lu Kang said Australia should not “use various excuses to artificially erect barriers.”

Australia had banned Huawei, citing risks of foreign interference and hacking which Beijing dismissed as an “excuse” to tilt the playing field against a Chinese firm.

The move, following advice from security agencies, signals a hardening of Australia’s stance toward its biggest trading partner as relations have soured over Canberra’s allegations of Chinese meddling in Australian politics.

It also brings Australia in line with the United States, which restricted Huawei and compatriot ZTE Corp from its lucrative market for similar reasons. — Reuters

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Nokia to buy Alcatel-Lucent to grow in telecom equipment

by UNTV   |   Posted on Wednesday, April 15th, 2015

HELSINKI/PARIS |

The logo of Alcatel-Lucent is pictured at the company headquarters in Boulogne-Billancourt near Paris April 14, 2015.
REUTERS/GONZALO FUENTES

(Reuters) – Nokia will buy Alcatel-Lucent in an all-share deal that values its smaller French rival at 15.6 billion euros ($16.6 billion), building up its telecom equipment business to compete with market leader Ericsson.

Nokia’s takeover of Alcatel-Lucent will redefine a telecom equipment sector suffering weak growth prospects and pressure from low-cost Chinese players Huawei [HWT.UL] and ZTE.

The combined company will have about 114,000 employees and combined sales of around 26 billion euros. In mobile equipment it will rank a strong second, with global market share of 35 percent, behind Sweden’s Ericsson with 40 percent and ahead of Huawei’s 20 percent, according to Bernstein Research.

The Finnish company will give Alcatel-Lucent shareholders 0.55 shares in the combined company for each of their old shares, resulting in 33.5 percent of the entity being in Alcatel’s hands and Nokia having the remaining 66.5 percent if the tender offer is fully taken up.

Nokia initially approached Alcatel-Lucent about buying only the wireless business but was rebuffed leading to the broader deal, Alcatel boss Michel Combes told Reuters in an interview.

Nokia shares rose 3 percent at the opening, while Alcatel-Lucent fell 11 percent, reversing trends on Tuesday when the talks were first acknowledged by the companies.

Alcatel shareholders were disappointed because they hoped for a part-cash offer, while Nokia holders were relieved that the group had not overpaid by making the offer all in shares, a trader said.

FRENCH JOBS PLEDGE

Nokia pledged to keep France as “a vibrant center of the combined company” and not to cut jobs beyond what Alcatel had already planned, especially protecting research and development sites at Villarceaux and Lannion.

Alcatel-Lucent has some 6,000 employees in France. Maintaining jobs was a key demand of the French state for its backing of the deal.

Nokia sold its once-dominant handset business last year after struggling to compete with smartphones by Apple and Samsung. That deal left it with the network unit, a smaller map unit and a bunch of technology patents.

The deal will be finalised in the first half of 2016 and is expected to result in 900 million euros of operating cost savings by the end of 2019, the companies said on Wednesday.

Some analysts said the deal carried significant risks. The track record of mergers in the sector has been poor over the past decade because of the difficulty of cutting costs in an R&D intensive business.

“Nokia’s risk profile will increase considerably… The risk is that the merger will become a long and rocky road and investors lose their patience following through the integration program that will take years,” said analyst Mikael Rautanen from Inderes Equity Research.

Other analysts, however, noted that Nokia and its Chief Executive Rajeev Suri have a good record on restructuring.

“There is no reason to doubt that this deal too wouldn’t increase shareholder value… We know that there are risks related to France and the cost cuts, but I believe that Nokia has calculated a margin of safety to the deal price,” said strategist Jukka Oksaharju from Nordnet brokerage.

Separately, Nokia confirmed it was exploring the sale of its HERE mapping unit, which analysts value at up to 6.9 billion euros.

The new Nokia will have stronger exposure to the important North American market, with key contracts with AT&T and Verizon and a fast-growing Internet routing business.

“The combined company is expected to have a stronger growth profile than Nokia’s current addressable market,” Nokia said, predicting a sales growth rate of about 3.5 percent for 2014 to 2019.

JPMorgan advised Nokia on the takeover, and boutique investment bank Zaoui & Co. advised Alcatel-Lucent.

(Editing by James Regan and Keith Weir)

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