China United Communications Corporation (Unicom Group), parent company of China Unicom, will transfer the management right of CDMA network to China Telecommunications Corporation (Telecom Group), parent company of China Telecom (0728.HK; CHA.NYSE), from Oct. 1.

The network transfer is expected to be finished in three months.

To finance the transaction and the future optimization of the network, China Telecom may choose to issue bonds to boost its cash flow, according to company sources.

Source:Xinhua