China Unicom (NYSE: CHU; 0762.HK; 600050.SH) has announced that its mainland parent company China United Telecommunications Corporation plans to merge with China Network Communications Group Corporation, the mainland parent company of China Netcom. The planned merger is expected to become effective in early January 2009.

Unicom also announced that an investigation into the future development and direction of the fixed-line business and assets owned and operated by its major shareholders is still underway.

Source:China Unicom Press Release