China Mobile's Taiwan bid collapses

China Mobile’s (CHL.NYSE, 0941.HKG) bid to buy a 12% stake in Taiwan’s Far EasTone Telecommunications (4904.TPE) has fallen through on regulatory obstacles, Bloomberg reported, citing a Taiwan Stock Exchange statement from the Taipei-based firm. The US$596 million deal was replaced with a framework for cooperation but the mainland mobile firm, the world’s biggest by subscriber numbers, could resume talks for buying the stake if regulations on ownership are relaxed. Current laws bar mainland companies from holding interests in the telecom sector on the island. However, the government has eased regulations recently, leading to the first mainland investment into a bank in Taiwan, which was announced earlier this month.