FWIW,
By: dwether
Reply To: None Sunday, 13 Feb 2000 at 5:30 AM EST
Post # of 70763
This from the PCCLF message board:
Bloomberg press EYE OPENER MUST READ ALL
Top Financial News
Sun, 13 Feb 2000, 4:19am EST
SingTel, Cable & Wireless HKT, CyberWorks Hold Talks on Possible Merger
By Linus Chua
HKT, SingTel, CyberWorks Meet Through Weekend on Merger Plans
Hong Kong, Feb. 13 (Bloomberg) -- Officials from Cable &
Wireless HKT Ltd., Singapore Telecommunications Ltd. and Pacific
Century CyberWorks Ltd. held separate talks over the weekend that
may lead to a three-way merger of two of Asia's biggest phone
companies and the region's biggest Internet firm outside Japan.
HKT said its advisers met their counterparts from CyberWorks
on Saturday, though a firm proposal wasn't made. SingTel denied a
report in the Hong Kong Standard that it's poised to withdraw from
its talks with HKT.
``The Hong Kong Standard report is not true,' said Ivan Tan,
a SingTel spokesman. ``The talks are still continuing.'
A three-way combination would create a company with access
to millions of customers in two of Asia's biggest telephone
markets. The new entity would control 60 percent of the phone
market for multinational businesses in Asia outside of Japan and
have a market capitalization of S$100 billion ($59 billion).
It also would probably expand to new markets such as Taiwan,
Korea, Malaysia and Indonesia.
Company officials declined to comment on other reports in
Hong Kong newspapers. The Hong Kong Economic Journal said an
unnamed U.S. telecommunications firm hired Salomon Smith Barney
Inc. as its adviser for a possible HKT bid. Apple Daily reported
that CyberWorks may buy a 27 percent stake in HKT from its parent,
Cable & Wireless Plc.
CyberWorks, established just nine months ago by Richard Li,
the son of Hong Kong tycoon Li Ka-shing, joined the fray on
Friday, saying it hired Warburg Dillon Read and Bank of China to
evaluate a possible investment in HKT.
CyberWorks is building a high-speed Internet network in Asia.
A stake in the combined company would give it the ability to
deliver electronic commerce and multimedia services throughout
Asia.
SingTel and HKT announced two weeks ago they were in talks to
form a $26 billion company with a footprint in two of Asia's
biggest telephone markets. SingTel presented a detailed proposal
for a merger with HTK Saturday that involves both cash and stock,
a banker close to the talks said.
HKT shares will resume trading Monday. The stock was
suspended Friday after surging 23 percent to HK$21.65, the biggest
one-day gain in at least a decade.
(Voluntary Disclosure: Position- Long)
|
