China Mobile Ltd., the world's biggest phone company by market value, will be ``rational'' and not ``aggressive'' in making overseas acquisitions, Chairman Wang Jianzhou said.

Emerging-market phone asset prices are ``inexpensive,'' Wang said in Macau today.

China Mobile, with net cash of 176 billion yuan ($25.8 billion) at the end of June, may buy emerging-market phone companies to diversify as domestic competition increases after a government plan to reorganize carriers in the world's biggest telecommunications market. The Chinese company faces competition from carriers including Singapore Telecommunications Ltd. and Telekom Malaysia Bhd to acquire overseas assets.

Lower prices of emerging market-companies have enticed cash- rich buyers such as China Mobile to seek acquisitions. The MSCI Emerging Markets Telecommunications Services Index has declined 49 percent this year.

China Mobile Communications Corp., which owns 74 percent of Hong Kong-listed China Mobile, is interested in expanding in Asia, Africa and the Middle East, Wang said April. The parent company will consider investing in minority holdings in addition to controlling stakes, said Wang.

Last year, China Mobile Communications bought Pakistan's Paktel Ltd., its first acquisition outside Chinese territory, for about $460 million.

Source:Bloomberg