PCCW <1186.HK> approaches banks for loan - paper
HONG KONG, Feb 22 (Reuters) - Pacific Century CyberWorks Ltd (PCCW) is
approaching banks for a US$10 billion bridging loan to build up its war chest for
a possible merger bid for Cable & Wireless HKT <0008.HK>, the Hong Kong Economic
Journal said on Tuesday.
The banks included HSBC Investment Bank Asia, BOCI Capital and BNP Hong Kong, the
newspaper quoted banking sources as saying.
PCCW raised about US$1.0 billion last week in a share placement and subscription
exercise to help finance the possible merger.
The newspaper said PCCW had submitted a merger proposal to Britain's Cable &
Wireless Plc , which holds 54 percent of Cable & Wireless HKT. Many banks were
interested in participating in the loan, and BOCI Capital and Bank of China
intended to underwrite more than half the total amount, but the loan size and
structure had not been finalised yet, it said. PCCW said on Monday it was still in
talks with Cable & Wireless Plc about a possible merger between PCCW and Cable &
Wireless HKT but no agreement had been reached yet. ((Hong Kong Newsroom +852
2843-6369, Fax +852 2845-0636 firstname.lastname@example.org)) .