PCCW-NEWS!!

                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.