Currently in Taiwan 4G band, Ambit Microsystems Corp, Hon Hai’s subsidiary, has two low-frequency bands of 700MHz and 900MHz. Because these two bands alone with Taiwan Mobile and Chunghwa Telecoms’, if anyone of them can ally with Ambit will have link advantage to make 4G business more competitive , thus Hon Hai play an important role in the Taiwan 4G market.

Analysts pointed out that Hon Hai has bid 4G license and invested in Taiwan Intelligent Fiber Optic Network Consortium( Taifo), a fiber-optic network service provider in Taipei , if Hon Hai can acquire a majority stake of CNS will be able to increase competitive strength of the fixed-line market; If Hon Hai and Taiwan Mobile to expand cooperation in the future, will be able to fight Chunghwa Telecom.

So far Chunghwa Telecom has about 10.66 million telecom users, 4.55 million broadband subscribers, 1.24 million subscribers of MOD. If Hon Hai can successfully invest in CNS and team with Taiwan Mobile, the number of cable TV subscribers will be expanded to 2.73 million, market share approaching 55% , has an absolute advantage.

Reported that MBK Partners has approximately sixty percent stake in CNS , is the largest shareholder. Since last year, MBK actively looking for buyers to sell its holdings in the hands of CNS, including Far Eastone Telecommunications, Ting Hsin International Group and the Hon Hai Group.

The market rumors, Hon Hai continued to negotiate the acquisition of CNS with MBK, has entered the final stages of trading patterns and price negotiations, may be acquired by the Hon Hai chairman Terry Gou’s private companies or set up a fund overseas acquisitions.

As the acquisition price, industry insiders said that last year CNS’s EBITDA of about NT$ 7.1 to NT$ 7.2 billion, the transaction price is approximately nine times EBITDA , about NT$ 63.9 to NT$ 64.8 billion.

But Hon Hai , CNS , MBK declined to comment on this rumor.