HONG KONG (Dow Jones)--Pacific Century CyberWorks Ltd. (h.pcw) is reportedly in talks with U.S. and Japanese telecommunications firms aimed at forming an alliance of some sort, according to a story Saturday in the South China Morning Post.
Quoting sources "familiar with the situation," the paper said the Hong Kong company is talking with one of the five largest telecoms firms, "believed to be AT&T," and a Japanese telecoms firm, to form a strategic partnership.
A spokesperson with CyberWorks would say only that "we decline to comment on speculation in the press." No one could be reached at AT&T in Hong Kong.
Quoting its unnamed source, the Post article said a new strategic partnership could build on the Telstra alliance "or it could be a replacement."
The speculation comes amid talk that a deal to form an alliance between CyberWorks and Australia's Telstra Corp. (TLS) is in trouble, and that the two companies are working at some kind of renegotiation of the plan.
Indeed, the spokesperson said that PCCW's group managing director, Alex Arena, is in Australia for talks with Telstra officials, although she would not say what they are talking about.
The two companies have agreed in principle to merge their Asian assets and form three new companies - a mobile telecommunications company, an Internet company to operate current assets and a new shell company to look at data-related acquisitions and alliances in Asia.
Under the current proposal, Telstra will own 40% of the mobile telecommunications company and 50% of the Internet company. It will also contribute US$1.5 billion cash and pay US$1.5 billion for a note convertible into PCCW shares.
Currently, the note is convertible into PCCW shares at an exercise price of HK$19.50 but PCCW shares are trading at less than half that level.
On Thursday, CyberWorks said it posted a net loss of HK$34.94 million in the six-month period ended June 30, compared with a loss of HK$40.71 million a year earlier. First-half revenue rose 40% from a year earlier to HK$104 million.
In a television interview with CNBC Asia after Thursday's result announcement, CyberWorks Chairman Richard Li said his firm had some kind of "plan B" in the works, but declined to comment further.
(END) DOW JONES NEWS 09-29-00
11:40 PM
Quoting sources "familiar with the situation," the paper said the Hong Kong company is talking with one of the five largest telecoms firms, "believed to be AT&T," and a Japanese telecoms firm, to form a strategic partnership.
A spokesperson with CyberWorks would say only that "we decline to comment on speculation in the press." No one could be reached at AT&T in Hong Kong.
Quoting its unnamed source, the Post article said a new strategic partnership could build on the Telstra alliance "or it could be a replacement."
The speculation comes amid talk that a deal to form an alliance between CyberWorks and Australia's Telstra Corp. (TLS) is in trouble, and that the two companies are working at some kind of renegotiation of the plan.
Indeed, the spokesperson said that PCCW's group managing director, Alex Arena, is in Australia for talks with Telstra officials, although she would not say what they are talking about.
The two companies have agreed in principle to merge their Asian assets and form three new companies - a mobile telecommunications company, an Internet company to operate current assets and a new shell company to look at data-related acquisitions and alliances in Asia.
Under the current proposal, Telstra will own 40% of the mobile telecommunications company and 50% of the Internet company. It will also contribute US$1.5 billion cash and pay US$1.5 billion for a note convertible into PCCW shares.
Currently, the note is convertible into PCCW shares at an exercise price of HK$19.50 but PCCW shares are trading at less than half that level.
On Thursday, CyberWorks said it posted a net loss of HK$34.94 million in the six-month period ended June 30, compared with a loss of HK$40.71 million a year earlier. First-half revenue rose 40% from a year earlier to HK$104 million.
In a television interview with CNBC Asia after Thursday's result announcement, CyberWorks Chairman Richard Li said his firm had some kind of "plan B" in the works, but declined to comment further.
(END) DOW JONES NEWS 09-29-00
11:40 PM
