SK Telecom drops tie-up plan with Sprint Nextel

SEOUL, Nov. 13 (Yonhap) -- South Korea's top mobile carrier SK Telecom Co. said Thursday it has scrapped a plan to forge a business tie-up with Sprint Nextel Corp. of the U.S. due to a worsening business environment.

SK Telecom, whose clients account for more than half of South Korea's 40 million
mobile users, has been in talks with the No. 3 mobile firm in the U.S. over a
possible business alliance agreement since late 2007.
"In the wake of global financial turmoil, the investment climate has deteriorated
both at home and abroad," an SK Telecom official said, asking not to be named.
Despite the break-up of the deal, SK Telecom has not ruled out the possibility of
seeking overseas acquisitions or stake purchases, the official said.
"We are closely monitoring market conditions and seeking further opportunities to
tap overseas markets, as we see the financial crisis as another opportunity," he
said.
In July, both companies denied a report that SK Telecom was seeking to buy a
major stake in the U.S. telecom company.
SK Telecom has been accelerating efforts to expand overseas to find a new growth
engine, without a breakthrough. In late June, the company sold its stake in
Helio, a 50-50 U.S. joint venture with broadband operator EarthLink, for US$39
million.
odissy@yna.co.kr
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