http://www.nytimes.com/reuters/world/technology/telecoms-hongkong-leg.html
New York Times
June 3, 2001
AOL and Legend Form Venture in China
By REUTERS
Filed at 8:57 p.m. ET
HONG KONG, June 4 (Reuters) - U.S. Internet firm AOL Time Warner (AOL.N) and
China's
largest personal computer maker Legend Holdings will enter into a US$200
million joint venture
in China, the Asian Wall Street Journal reported on Monday.
The move, marking the U.S. company's first major entry into the Chinese
market, is expected to
be announced next week in Beijing, the AWSJ quoted an AOL document dated
late last month.
The report said the two companies would each contribute US$100 million to
set up a new
company to develop interactive services targeted at Chinese consumers, with
Legend holding a
52 percent stake, reflecting China's tight restrictions on foreign ownership
in the
telecommunications and Internet sector.
Shares of Legend Holdings rose about one percent to HK$5.40 on Friday, and
up almost 10.2
percent so far this year, outperforming the Hang Seng index which is down
12.9 percent.
Legend officials could not be reached for comment.
The AWSJ said the deal could hasten a long-awaited consolidation among
Chinese portals.
NetEase.com, one of China's three largest portals, has been looking for a
buyer for months,
holding talks with AOL and Legend as well as with Hong Kong's i-Cable
Communications Ltd,
the paper quoted sources familiar with the talks.
Sina.com also had met recently with Hong Kong-based Chinadotcom, the
newspaper said.
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