CyberWorks May Expand HKT Venture With News Corp. (Update1)
3/1/00 10:55:00 PM
Source: Bloomberg News
(Adds appointment of new joint venture chief executive, background throughout.)
Hong Kong, March 2 (Bloomberg) -- Pacific Century CyberWorks Ltd., Asia's
third-biggest Internet investment firm, may expand a joint venture between Cable &
Wireless HKT Ltd. and Rupert Murdoch's News Corp., its chairman said.
A separate venture between News Corp. and Singapore Telecommunications Ltd.,
which failed in its bid to buy HKT, doesn't pose a threat to future cooperation, said
CyberWorks Chairman Richard Li. CyberWorks is buying HKT for up to $38.1 billion in
Asia's biggest merger outside Japan.
''We will definitely discuss with them whether to continue the project, abandon the project,
or expand the project,'' Li told reporters. ''We are open-minded and if it proves to be
beneficial to our shareholders it won't be a surprise to further expand the project.''
Li's optimism could mean relations are warming between the son of Hong Kong tycoon
Li Ka-shing and Murdoch, who heads of the world's fourth-biggest media company.
News Corp. today named Tom Mockridge, a longtime executive at the Sydney-based
company, to head the venture with HKT.
Mockridge, a New Zealander, joined News Corp. in 1991 and served as chief executive
of Foxtel, its Australian pay television unit.
The venture is to distribute 50 television channels, provided by News Corp.'s Satellite
Television Asian Region Ltd., or Star TV, over HKT's broadband network. It will also
improve existing online shopping, on-demand video and high-speed Internet access
services, which HKT already offers.
Star TV said separately that Li met with Rupert Murdoch's son James Murdoch in Hong
Kong yesterday. Murdoch paid Li $950.5 million in 1995 for Star TV, which has yet to turn
a profit.
Li said he was feeling just as generous towards rival Sing Tel. ''If the Singapore
government has good proposals which we think can enhance shareholder value, we
would definitely consider that,'' Li said. ''Though we completed for HKT before, it doesn't
mean we can't cooperate in the future.''
While Li didn't close the door on News Corp., he also left it open for other potential joint
venture partners. ''We can take time to decide what are our emphasis and what are not.
Then we may take in minority partners in areas that is not of our primary focus.''
Li also said he hoped HKT Chairman Linus Cheung and his top management remains at
Hong Kong's dominant telephone company after the takeover is completed, a process
that is expected to take four months. Cheung later confirmed he will remain at the
company.
''I hope all the senior management will stay,'' Li said. HKT management had the ability to
develop business in other Asian markets, and had only refrained from doing so in order
not to interfere with Cable & Wireless Plc's plans for the region, he said.
Li repeated a pledge not to sell any of its businesses within a year.
''We are comfortable with our financial situation. There is no need for us to do a LBO
(leveraged buyout) or selling the company piece by piece.'' he said. ''We have over $2
billion of cash ourselves and $2 billion of cash inside HKT.''
CyberWorks rose 1.5 percent to HK$20.70. HKT fell 2.2 percent to HK$22.25. News
Corp. rose 4.9 percent to A$25.85. Email this story to a friend Click for printer-friendly
format
3/1/00 10:55:00 PM
Source: Bloomberg News
(Adds appointment of new joint venture chief executive, background throughout.)
Hong Kong, March 2 (Bloomberg) -- Pacific Century CyberWorks Ltd., Asia's
third-biggest Internet investment firm, may expand a joint venture between Cable &
Wireless HKT Ltd. and Rupert Murdoch's News Corp., its chairman said.
A separate venture between News Corp. and Singapore Telecommunications Ltd.,
which failed in its bid to buy HKT, doesn't pose a threat to future cooperation, said
CyberWorks Chairman Richard Li. CyberWorks is buying HKT for up to $38.1 billion in
Asia's biggest merger outside Japan.
''We will definitely discuss with them whether to continue the project, abandon the project,
or expand the project,'' Li told reporters. ''We are open-minded and if it proves to be
beneficial to our shareholders it won't be a surprise to further expand the project.''
Li's optimism could mean relations are warming between the son of Hong Kong tycoon
Li Ka-shing and Murdoch, who heads of the world's fourth-biggest media company.
News Corp. today named Tom Mockridge, a longtime executive at the Sydney-based
company, to head the venture with HKT.
Mockridge, a New Zealander, joined News Corp. in 1991 and served as chief executive
of Foxtel, its Australian pay television unit.
The venture is to distribute 50 television channels, provided by News Corp.'s Satellite
Television Asian Region Ltd., or Star TV, over HKT's broadband network. It will also
improve existing online shopping, on-demand video and high-speed Internet access
services, which HKT already offers.
Star TV said separately that Li met with Rupert Murdoch's son James Murdoch in Hong
Kong yesterday. Murdoch paid Li $950.5 million in 1995 for Star TV, which has yet to turn
a profit.
Li said he was feeling just as generous towards rival Sing Tel. ''If the Singapore
government has good proposals which we think can enhance shareholder value, we
would definitely consider that,'' Li said. ''Though we completed for HKT before, it doesn't
mean we can't cooperate in the future.''
While Li didn't close the door on News Corp., he also left it open for other potential joint
venture partners. ''We can take time to decide what are our emphasis and what are not.
Then we may take in minority partners in areas that is not of our primary focus.''
Li also said he hoped HKT Chairman Linus Cheung and his top management remains at
Hong Kong's dominant telephone company after the takeover is completed, a process
that is expected to take four months. Cheung later confirmed he will remain at the
company.
''I hope all the senior management will stay,'' Li said. HKT management had the ability to
develop business in other Asian markets, and had only refrained from doing so in order
not to interfere with Cable & Wireless Plc's plans for the region, he said.
Li repeated a pledge not to sell any of its businesses within a year.
''We are comfortable with our financial situation. There is no need for us to do a LBO
(leveraged buyout) or selling the company piece by piece.'' he said. ''We have over $2
billion of cash ourselves and $2 billion of cash inside HKT.''
CyberWorks rose 1.5 percent to HK$20.70. HKT fell 2.2 percent to HK$22.25. News
Corp. rose 4.9 percent to A$25.85. Email this story to a friend Click for printer-friendly
format
