Sources say ZTE is in talks with a major internet firm on a deal that would
package ZTE’s handset business into a joint venture with the internet company
and Shanghai state capital. Employees of the internet firm said it proposed an
investment of about 8 bln yuan while ZTE is seeking a c.40 bln yuan business
valuation; final valuation, ownership split and transaction structure are still
under discussion. ZTE, when asked, said the reports are "not true".
