South Korea's biggest mobile phone operator, SK Telecom, is eyeing up a 10% stake in China's second-largest mobile group, China Unicom, the Financial Times reported, citing bankers approached to advise on the acquisition. Based on its current market capitalization of about US$11 billion, the deal would be worth about US$1.1 billion. In March, Chang Xiaobing, China Unicom's chairman and chief executive, said that the mobile operator was searching for a domestic or foreign strategic partner to help develop its mobile services for 3G on the mainland. However, analysts were skeptical about the investment, citing China Unicom's unclear future ahead of impending 3G licensing and potential restructuring of the domestic telecoms industry.