Cabinet Endorses CAT Telecom's Withdrawal From Hutch Takeover

Cabinet Endorses CAT Telecom's Withdrawal from Hutch Takeover

The Cabinet gave the nod for CAT Telecom to pull out of Hutch takeover, as there could be little to gain from the deal.

Prime Minister Abhisit Vejjajiva said after the Cabinet meeting that the Cabinet endorsed the cancellation of state owned CAT Telecom's plan to take over CDMA mobile operator Hutch.

He noted that the Information and Communications Technology Ministry, which previously proposed the acquisition, thinks the state enterprise would not get much out of the deal.

Abhisit further stated that the ICT ministry no longer has interest in the Hutch takeover and is looking for new business opportunities for the state enterprise.

He said whatever CAT Telecom is planning to do next, whether it's new investments or alterations to existing contracts, it must follow the underlying regulations and the law.

The premier added that if it is a new investment, the company needs approval from the National Economic and Social Development Board.

If it is about modifications to any joint venture contracts, CAT Telecom must follow the joint venture law and have their proposals considered by the joint venture committee.

-- Tan Network 2010-12-29