19:06 SingTel: crux of takeover C&W HKT(0008) depends on construction of consideration
(Infocast News) As quoted from newswire, Sin Hang Boon, Chief Executive of Singapore Telecommunications, said in an interview that SingTel is still in talks with C&W HKT (0008) for a possible merger. Whether the merger can be materialised or not, depending on construction of stakes and stocks within the consideration, although speculation circle the market, both sides have not reached a final decision till now.
He pointed out that this type of discussion may change in any moment, therefore it is difficult to predict the result at this monment.
Regarding to PCCW's (1186) C&W HKT's merger proposal , he stated that PCCW's advantages is the market's valuation to Internet stocks is high which is the reason of PCCW-C&W HKT merger to be attractive.
Also, he expressed that even if PCCW will be the winner of competition for control of C&W HKT, SingTel still has the second chance as history showed that Richard Li, Chairman of PCCW, is very good at acquisition, value-adding, and selling off at a higher price, citing Li's sale of Star TV is one of the good examples.
In addition, he said that the purpose of SingTel's acquisition of C&W HKT is to offset the future competition. At present, the telecommuniation traffic between Singapore and Hong Kong is already very large. So, instead of sharing the market with newcomers, SingTel decides to merge with C&W HKT in Hong Kong. Therefore, SingTel will has an extensive communication network in Asia which is SingTel's strategy.
He underlined that exploration of mainland market is not the reason of acquring C&W HKT.
(18/02/00)
(Infocast News) As quoted from newswire, Sin Hang Boon, Chief Executive of Singapore Telecommunications, said in an interview that SingTel is still in talks with C&W HKT (0008) for a possible merger. Whether the merger can be materialised or not, depending on construction of stakes and stocks within the consideration, although speculation circle the market, both sides have not reached a final decision till now.
He pointed out that this type of discussion may change in any moment, therefore it is difficult to predict the result at this monment.
Regarding to PCCW's (1186) C&W HKT's merger proposal , he stated that PCCW's advantages is the market's valuation to Internet stocks is high which is the reason of PCCW-C&W HKT merger to be attractive.
Also, he expressed that even if PCCW will be the winner of competition for control of C&W HKT, SingTel still has the second chance as history showed that Richard Li, Chairman of PCCW, is very good at acquisition, value-adding, and selling off at a higher price, citing Li's sale of Star TV is one of the good examples.
In addition, he said that the purpose of SingTel's acquisition of C&W HKT is to offset the future competition. At present, the telecommuniation traffic between Singapore and Hong Kong is already very large. So, instead of sharing the market with newcomers, SingTel decides to merge with C&W HKT in Hong Kong. Therefore, SingTel will has an extensive communication network in Asia which is SingTel's strategy.
He underlined that exploration of mainland market is not the reason of acquring C&W HKT.
(18/02/00)
