By Bill Clifford, CBS.MarketWatch.com
Last Update: 1:03 AM ET Oct. 2, 2002
HONG KONG (CBS.MW) -- Hutchison Whampoa has scrapped the sale of $1.45 billion of euro and sterling bonds because of unstable global markets, the company and its investment bankers said Wednesday.
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The Hong Kong conglomerate (HUWHY: news, chart, profile), a major investor in European telecommunications, had planned to sell up to 1 billion euros ($983 million) and 300 million pounds ($470 million) of bonds to investors in Europe and Asia.
The euro and sterling bond markets "have deteriorated to an unprecedented extent over recent days," said Frank Sixt, finance director for Hutchison Group.
Noting that other companies have also canceled bond issues, Sixt said, "We believe it is appropriate for us to do likewise, and to postpone further bond market activities until markets stabilize."
U.S. computer maker Hewlett-Packard (HPQ: news, chart, profile) on Tuesday shelved plans to sell nearly $1 billion of bonds denominated in euros and sterling.
Also this week, TI Automotive, a Michigan-based vehicle parts supplier with operations in the U.K., scrapped the sale of $300 million of junk-rated notes in Europe, Reuters reported.
"In light of current extreme volatilities in the world's financial markets, Hutchison Whampoa's joint lead managers have decided to postpone the company's latest dual-currency bond offering," Deutsche Bank (DB: news, chart, profile), HSBC Holdings (HBC: news, chart, profile) and J.P. Morgan Chase (JPM: news, chart, profile) in a joint statement.
Hutchison and its bankers haven't set a new sale date. The bonds were supposed to have been priced by Wednesday.
"Pricing it in this extremely poor market would in my view be unwise and disadvantageous to our shareholders," Sixt said.
Bill Clifford is Asia bureau chief of CBS.MarketWatch.com
Last Update: 1:03 AM ET Oct. 2, 2002
HONG KONG (CBS.MW) -- Hutchison Whampoa has scrapped the sale of $1.45 billion of euro and sterling bonds because of unstable global markets, the company and its investment bankers said Wednesday.
CBS MARKETWATCH TOP NEWS
Dow, Nasdaq start new quarter with a bang
Dell increases Q3 revenue outlook
AOL's Case pledges progress
Ex-Qwest CEO denies 'sham' deals
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The Hong Kong conglomerate (HUWHY: news, chart, profile), a major investor in European telecommunications, had planned to sell up to 1 billion euros ($983 million) and 300 million pounds ($470 million) of bonds to investors in Europe and Asia.
The euro and sterling bond markets "have deteriorated to an unprecedented extent over recent days," said Frank Sixt, finance director for Hutchison Group.
Noting that other companies have also canceled bond issues, Sixt said, "We believe it is appropriate for us to do likewise, and to postpone further bond market activities until markets stabilize."
U.S. computer maker Hewlett-Packard (HPQ: news, chart, profile) on Tuesday shelved plans to sell nearly $1 billion of bonds denominated in euros and sterling.
Also this week, TI Automotive, a Michigan-based vehicle parts supplier with operations in the U.K., scrapped the sale of $300 million of junk-rated notes in Europe, Reuters reported.
"In light of current extreme volatilities in the world's financial markets, Hutchison Whampoa's joint lead managers have decided to postpone the company's latest dual-currency bond offering," Deutsche Bank (DB: news, chart, profile), HSBC Holdings (HBC: news, chart, profile) and J.P. Morgan Chase (JPM: news, chart, profile) in a joint statement.
Hutchison and its bankers haven't set a new sale date. The bonds were supposed to have been priced by Wednesday.
"Pricing it in this extremely poor market would in my view be unwise and disadvantageous to our shareholders," Sixt said.
Bill Clifford is Asia bureau chief of CBS.MarketWatch.com
