China Unicom (Hong Kong) Ltd. said Monday its U.K. unit is in contact with a consortium bidding for a stake in Nigerian Telecommunications Ltd., after nearly a week of confusion over the Chinese telecom's participation.

China Unicom, which provides mobile, fixed-line and broadband services in China, said wholly owned China Unicom (Europe) Operations Ltd. has indicated interest in providing technical and managerial support to some potential bidders for a stake in NITEL, and would be interested in exploring the possibility of equity investment, subject to certain conditions being fulfilled.

"As at the date of this announcement, Unicom Europe has not commenced any negotiations with the relevant parties with respect to any substantive and legally binding agreements," China Unicom (Hong Kong) said in a statement.

The statement comes after Nigeria's Bureau of Public Enterprises said last Tuesday that China Unicom was part of a consortium bidding for a stake in NITEL. Chigbo Anichebe, head of public communications at the Nigerian agency, had said in a statement Tuesday that an offer by the New Generations Consortium was the highest bid submitted by five companies that participated for a stake in NITEL and its subsidiary, M-TEL. The agency said China Unicom was part of the New Generations Consortium. But China Unicom spokeswoman Sophia Tso said Thursday the telecom operator isn't part of a consortium bidding for a stake in NITEL.

China Unicom also said Monday it and its parent company aren't in any direct discussions or negotiations with any parties involved in the proposed privatization of NITEL.

The Nigerian government has said it is looking to sell a 75% stake in NITEL. The New Generation Consortium has bid US$2.5 billion, but analysts said the price is too high and consider NITEL to be worth around $400 million to $500 million.

Some analysts expressed surprise at the statements of China Unicom's involvement, saying the company is unlikely to expand overseas as it is being tied up by intensifying competition in its home market, and is expected to focus its resources on its newly launched third-generation mobile operations.

China Unicom's larger rival, China Mobile Ltd., in contrast, is cash-rich and has already made forays into overseas markets. With its parent, China Mobile Communications Corp., it paid US$284 million for an 89% stake in Pakistan carrier Paktel Ltd. in 2007.

source:wsj