Singapore Telecommunications Ltd. is considering investing in China Telecom Corp., a fixed-line operator in the mainland, although formal discussions between the two parties have not started, the Wall Street Journal reported on Thursday, citing unnamed sources.

China Telecom needs cash to expand the mobile phone business it is buying from China Unicom Ltd. for 43.8 billion yuan ($6.3 billion), according to the report.

'SingTel has the money to invest. They have been eyeing a substantial investment in China for years,' a source familiar with the discussions told the newspaper.

A spokesman for China Telecom said the company was seeking a strong strategic partner and has been approached by a number of parties that he did not identify.

SingTel declined to comment if it was talking to China Telecom.

SingTel, 55 percent owned by Singapore state investment company Temasek Holdings, holds stakes in mobile phone operators in India, Indonesia, Thailand, Philippines, Pakistan and Bangladesh. It also owns Optus in Australia.

($1 = 6.9 yuan)

Source:Thomson Financial