Here's an interesting article from today's SCMP, cross-posted from RB CWAHF board. This sort of meeting may be a good idea.
By: Jonas
Reply To: None Wednesday, 5 Apr 2000 at 11:29 PM EDT
Post # of 845
A fascinating post from the PCCLF board!
By Mike (mlnrclb)
Thursday, April 6, 2000
TECHNOLOGY
Li breaks bread with Softbank detractor
KAI PETER YU
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Softbank and Pacific Century CyberWorks have taken steps to repair strained relations
following Softbank vice-president Yoshitaka Kitao's verbal assault on CyberWorks chief
Richard Li Tzar-kai last month during a visit to Hong Kong.
A source close to Softbank said Mr Kitao had lunched with Mr Li in Tokyo yesterday in a bid to
restore ties which were damaged by his televised criticisms of Mr Li and Hikari Tsushin
president Yasumitsu Shigeta.
"It was the first time [Mr Kitao] and [Mr Li] have been in direct dialogue," the source said.
The lunch was said to have been more than just a social occasion.
A number of business deals between CyberWorks and Softbank's Hong Kong-listed arm are
believed to have been discussed and the future direction of co-operation between the two
companies mapped out during the meeting.
Analysts said that the need for the two Asian Internet giants to co-operate more closely has
become more apparent in view of the worldwide downturn in Internet stocks.
"The leading players in the Internet economy are seeing that combining their strengths to create
value and jointly co-operating in their own geographical domain [is the way forward]," S.J.
Wong, chief executive of e2-Capital said.
CyberWorks shares ended yesterday at HK$14.95, down 43 per cent from their peak of
HK$26.35 on February 15.
Softbank Investment International Strategic, formerly Cheung Wah Development, has lost 74
per cent from its peak of HK$17.70 on February 15, dragged down by a 60 per cent slide in
parent Softbank over the past month.
A locally-based corporate financier suggested one of the reasons for the plunge in Softbank
Investment's share price was because investment banks close to CyberWorks had led a sell-off
in Softbank International following Mr Kitao's comments.
"They were second-guessing Mr Li's wishes," he said.
Whether this is true or not, forging stronger ties with CyberWorks is seen as essential step for
Softbank International to expand into the potentially lucrative Internet sphere of Hong Kong and
the mainland.
scmp.com
All the PCCLF research at PCCLF board at Financialville.com
Mike
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