SK Telecom refrains from seeking controlling interest in any major U.S. telecom

By Jennifer Chiou

New York, July 18 - SK Telecom Co. Ltd. said in a statement that it is exploring various business opportunities in the U.S. market, but it is "not seeking to acquire a controlling interest in any major U.S. mobile telecommunications operator," according to a 6-K filing with the Securities and Exchange Commission.

The company noted that it will provide a status update within six months.

SK issued the statement in response to an inquiry from the Korea Stock Exchange asking it to clarify media reports regarding SK's possible acquisition of Sprint Nextel Corp.

On May 14, Virgin Mobile USA, Inc. confirmed it is in discussions with SK regarding potential strategic opportunities.

On June 30, it was reported that market participants saw Sprint Nextel's bonds continuing to firm, apparently given a lift by renewed talk that the Overland Park, Kan.-based wireless carrier might be able to benefit from a consolidation trend in the wireless industry.

As previously noted, that business has seen such deals that include Verizon acquiring Alltel Corp. to strengthen its market share, Virgin Mobile buying Helio LLC while Helio parent SK Telecom takes a 17% stake in Virgin Mobile and Best Buy taking a $1 billion stake in Carphone Warehouse Group plc.

Virgin Mobile is a Warren, N.J., wireless communications services provider.

SK Telecom is wireless telecommunications service provider based in Seoul, South Korea.

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