HONG KONG, May 09, 2000 (AP Worldstream via COMTEX) -- Pacific Century
CyberWorks may sell Singapore Telecommunications some assets of Hong Kong's
dominant telephone company after its pending merger with the telecoms giant, a
newspaper reported Tuesday.
PCCW, which recently won a bid for Cable and Wireless HKT against SingTel, is in
talks with its formal rival bidder for it to take a stake in two joint ventures
it recently formed with Australia's dominant telecommunications firm Telstra
Corp., the Hong Kong Economic Times said, quoting unidentified sources.
The two ventures, which pool the fixed-line and mobile assets of Cable and
Wireless HKT and Telstra, are widely believed to be PCCW' first step to dispose
of the core businesses of Hong Kong's oldest telephone company.
The joint ventures are also contingent upon the success of PCCW's pending merger
with Cable and Wireless HKT.
PCCW also hasn't ruled out selling part of Cable and Wireless HKT's fixed-line
business to SingTel, the Chinese-language business daily said.
PCCW and SingTel officials declined to comment on the report Tuesday.
PCCW, an Internet company owned by tycoon Richard Li, wants to dominant Asia's
fast broadband Internet access services and provide TV programming.
It won in February a bid to buy the telephone company in an all shares or
cash-and-share deal. Its share value has since plunged substantially amid the
global technology stock selloff, prompting concerns that the deal might falter.
London-based Cable and Wireless PLC -- which owns 54 percent of the Hong Kong
company has already said it has irrevocably agreed to vote in favor of the PCCW
merger, which is now pending approval from its minority shareholders.
Cable and Wireless HKT's minority shareholders will vote on the merger in late
June.
Copyright 2000 Associated Press, All rights reserved.
CyberWorks may sell Singapore Telecommunications some assets of Hong Kong's
dominant telephone company after its pending merger with the telecoms giant, a
newspaper reported Tuesday.
PCCW, which recently won a bid for Cable and Wireless HKT against SingTel, is in
talks with its formal rival bidder for it to take a stake in two joint ventures
it recently formed with Australia's dominant telecommunications firm Telstra
Corp., the Hong Kong Economic Times said, quoting unidentified sources.
The two ventures, which pool the fixed-line and mobile assets of Cable and
Wireless HKT and Telstra, are widely believed to be PCCW' first step to dispose
of the core businesses of Hong Kong's oldest telephone company.
The joint ventures are also contingent upon the success of PCCW's pending merger
with Cable and Wireless HKT.
PCCW also hasn't ruled out selling part of Cable and Wireless HKT's fixed-line
business to SingTel, the Chinese-language business daily said.
PCCW and SingTel officials declined to comment on the report Tuesday.
PCCW, an Internet company owned by tycoon Richard Li, wants to dominant Asia's
fast broadband Internet access services and provide TV programming.
It won in February a bid to buy the telephone company in an all shares or
cash-and-share deal. Its share value has since plunged substantially amid the
global technology stock selloff, prompting concerns that the deal might falter.
London-based Cable and Wireless PLC -- which owns 54 percent of the Hong Kong
company has already said it has irrevocably agreed to vote in favor of the PCCW
merger, which is now pending approval from its minority shareholders.
Cable and Wireless HKT's minority shareholders will vote on the merger in late
June.
Copyright 2000 Associated Press, All rights reserved.
