China Mobile (HKG:0941, SHA:600941) is inching closer toward the takeover of Hong Kong broadband firm HKBN (HKG:1310), Reuters reported Wednesday, citing three unnamed sources with knowledge of the matter.

I Squared, a US-based global infrastructure investor, was preparing its counter-offer of HK$5.23 per HKBN share but did not want to pay more than HK$6 per share, the report said.

The US investor did not obtain approval from China Investment Corp. to bid for HKBN, the report said, citing the sources.

CIC, a Chinese sovereign wealth fund, thumbed down the deal as a minority shareholder in I Squared-controlled HGC Global Communications, as the deal could impact the fixed-line operator's operations, the report said, citing one of the sources.

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