China Mobile to be 'rational' on takeovers

China Mobile Ltd, the world's biggest phone company by market value, will be "rational" and not "aggressive" in making overseas acquisitions, Chairman Wang Jianzhou said.

Emerging-market phone asset prices are "inexpensive", providing little incentive for owners to sell, Wang told reporters in Macao yesterday. The Beijing-based company doesn't have an acquisition target at present, he said.

China Mobile, with net cash of 176 billion yuan ($25.8 billion) at the end of June, may buy emerging-market phone companies to diversify as domestic competition increases after a government plan to reorganize carriers in the world's biggest telecommunications market. The Chinese company faces competition from carriers including Singapore Telecommunications Ltd. and Telekom Malaysia Bhd to acquire overseas assets.