True Corp's share price rose significantly yesterday amid huge trade volume, following rumours that it is in talks to sell shares to telecom operator China Mobile for a possible strategic partnership.

True's share price surged 18 per cent from Tuesday to close at Bt3.64 on trade volume of Bt600 million, unlike the thin volumes of the past. True's average share price is Bt3.

True chief executive Supachai Chearavanont yesterday denied the rumour about the China Mobile proposal.

 "It's not true," he said.

The rumour started last Friday when its share price closed at Bt2.74, up from Bt2.70 the previous day.

True Move, the cellular flagship of True, is the only Thai cellular operator without a strategic foreign partner. Therefore, it is believed that True needs a cash-rich partner to help finance its investment in the 3G mobile broadband business.

True Move plans to spend about Bt1 billion on rolling out the 3G network in some provinces this year.

Supachai has insisted that True does not want to lose management control in True Move, and needs only a financial partner.

True businesses cover the fixed-line telephone service, cellular and pay-TV. The third largest cellular operator, True Move has more than 12 million subscribers.

The largest cellular operator Advanced Info Service has Singapore Telecom as its strategic partner, while Norway's telecom giant Telenor is the strategic partner of Total Access Communication.

The Nation, October 2, 2008