China Tower Transaction: Unicom Gains Most In Interim, Telecom May Be Long-Term Winner

China Unicom's stock reacted the most positively to the developments, rallying by close to 15% over the last three days, as investors see the carrier as unlocking the most near-term value via the transaction. China Telecom, the smallest Chinese wireless player, also saw decent gains, with the stock rising by close to 10% through Wednesday. In this note, we take a look at the structure of the new entity and the specific impact on the two smaller carriers. Our $15 price estimate for China Unicom i...