SINGAPORE, Feb 27, 2000 (AP Worldstream via COMTEX) -- Singapore
Telecommunications may seek a court injunction to stop HSBC Holdings PLC from
helping another company bid for a Hong Kong phone giant with which SingTel wants
to merge, newspapers reported Sunday.
The rival bidder, Hong Kong's Pacific Century CyberWorks, has been expected to
make an offer for Cable and Wireless HKT. Cable and Wireless has also been in
merger talks with SingTel.
Global banking group HSBC had been advising Cable and Wireless about SingTel's
merger bid, but it recently resigned and is now a proposed source of funds for
the rival bidder, Pacific Century CyberWorks, London's Sunday Telegraph and
Singapore's Straits Times said.
SingTel is now planning to sue HSBC for breaking conflict of interest rules and
seek a Hong Kong court order to stop it from lending money to Pacific Century
CyberWorks, the Sunday Telegraph report said.
HSBC spokesman Gareth Hewett told The Associated Press Sunday that the company
had ``not heard from Singapore Telecom, nor have we heard from Singapore
Telecom's legal advisers,'' and so could not comment on the reports.
``However, what we would like to make absolutely clear is that at all times we
have acted properly in our dealings with Cable and Wireless HKT,'' he said.
Neither the Straits Times nor the Sunday Telegraph identified their sources for
the reports.
Both SingTel spokesman Lim Seng Jin and Cable and Wireless HKT spokeswoman Mimi
Lam in Hong Kong declined to comment.
Telecom mergers have already swept the more open U.S. and European markets,
leading to some of the biggest corporate takeovers in history. But such deals
are still rare in Southeast Asia.
Formed less than a year ago, Pacific Century CyberWorks is setting up an
Internet network in Asia and is valued at 229 billion Hong Kong dollars (dlrs
29.3 billion).
The new company is controlled by Richard Li, whose father, Li Ka-shing, is one
of Hong Kong's wealthiest businessmen.
Cable and Wireless HKT is 54 percent held by Cable and Wireless PLC of Britain.
Copyright 1999 Associated Press, All rights reserved.
Telecommunications may seek a court injunction to stop HSBC Holdings PLC from
helping another company bid for a Hong Kong phone giant with which SingTel wants
to merge, newspapers reported Sunday.
The rival bidder, Hong Kong's Pacific Century CyberWorks, has been expected to
make an offer for Cable and Wireless HKT. Cable and Wireless has also been in
merger talks with SingTel.
Global banking group HSBC had been advising Cable and Wireless about SingTel's
merger bid, but it recently resigned and is now a proposed source of funds for
the rival bidder, Pacific Century CyberWorks, London's Sunday Telegraph and
Singapore's Straits Times said.
SingTel is now planning to sue HSBC for breaking conflict of interest rules and
seek a Hong Kong court order to stop it from lending money to Pacific Century
CyberWorks, the Sunday Telegraph report said.
HSBC spokesman Gareth Hewett told The Associated Press Sunday that the company
had ``not heard from Singapore Telecom, nor have we heard from Singapore
Telecom's legal advisers,'' and so could not comment on the reports.
``However, what we would like to make absolutely clear is that at all times we
have acted properly in our dealings with Cable and Wireless HKT,'' he said.
Neither the Straits Times nor the Sunday Telegraph identified their sources for
the reports.
Both SingTel spokesman Lim Seng Jin and Cable and Wireless HKT spokeswoman Mimi
Lam in Hong Kong declined to comment.
Telecom mergers have already swept the more open U.S. and European markets,
leading to some of the biggest corporate takeovers in history. But such deals
are still rare in Southeast Asia.
Formed less than a year ago, Pacific Century CyberWorks is setting up an
Internet network in Asia and is valued at 229 billion Hong Kong dollars (dlrs
29.3 billion).
The new company is controlled by Richard Li, whose father, Li Ka-shing, is one
of Hong Kong's wealthiest businessmen.
Cable and Wireless HKT is 54 percent held by Cable and Wireless PLC of Britain.
Copyright 1999 Associated Press, All rights reserved.
