Shares in China Unicom have risen to their highest in more than two months after a report said that China has put the finishing touches on a plan to revamp the country’s telecommunications sector. Shares in China’s second largest mobile operator rose 6.6% in Hong Kong trading Friday to HK$18.68, the highest since October 30 last year. The surge brought its two-day gain to 14%.
The South China Morning Post reported Friday that the planned revamp will include  a series of mergers and a reshuffle of senior executives. According to the report, China Unicom’s GSM network business will merge with China Netcom, while China Unicom’s CDMA operations will be merged with China Telecom. The report added that China Mobile will be merged with unlisted fixed-line operator China Tietong Group. Analysts were quick to point out that such speculation has arisen many times before. China Unicom said in a statement that it’s not aware of reasons for the increase in its shares today: “We also confirm that there are no negotiations and agreements relating to intended acquisitions.”