In the first round of bidding in February, Far Eastone outbid bigger rival Chunghwa Telecom, Apple Inc supplier Hon Hai Precision and an unidentified Japanese company, the newspaper said, citing unnamed industry sources.
Far Eastone plans to acquire the unit, called T Star, in a cash and share deal, the paper said but added that it was still possible that Ting Hsin, the parent company of Hong Kong-listed Tingyi Cayman Islands Holding Corp, may hold a second round of bidding.
Far Eastone spokeswoman Yaling Lang said that most telecommunications companies would be interested in T Star but declined further comment.
Ting Hsin officials were not immediately available for comment.
Ting Hsin, maker of China's popular Master Kong instant noodles, has been looking for a buyer for the unit after the government asked local banks to withhold new lending to the company in the wake of food scandals last year.