News but nothing new: Trading in Cyberworks shares suspended (03/17/2000)
Trading in shares of Pacific Century CyberWorks was suspended Friday after a report said the company has booked unrealised gains of $1 billion from investments in Internet-related firms.
Trading in CyberWorks, headed by Hong Kong tycoon Li Ka-shing's son Richard, was suspended at its request until a statement clarifying the situation is issued, a spokesman for the Stock Exchange of Hong Kong said.
The Internet firm lost 65 Hong Kong cents (8.4 US cents) to close at 19.95 dollars on Thursday.
In comments reported in the South China Morning Post Friday, CyberWorks managing director Alex Arena said the company booked the unrealised gains from investments in about a dozen listed Internet-related investments.
"We have invested in more than 40 companies. The amount of investments, both in shares and (cash-swaps) total 600 million dollars," he said.
"If it is strategic investments, we tend to keep most of them longer. If it is non-strategic investments, we might consider selling them given the market is doing well," said Arena.
Arena also dismissed shareholders' concerns over the recent slump in the prices of technology stocks including CyberWorks.
"I don't think we should focus on day-to-day fluctuations in any share price. What we should do is build business, have a plan and a good management team," he said.
The company, which was only established last May, late last month won a battle for control of Hong Kong's main telephone network operator, Cable and Wireless Hong Kong Telecom.
Li's new firm PCCW-HKT will be the third largest on the Hong Kong stock exchange, with a value of 533.63 billion Hong Kong dollars (US$68.5 billion).
Cyberworks' growth had been largely powered by its investments in Internet and other high-tech start-up companies.
As part of this strategy it acquired five million shares in SoftNet Systems in January, making it the Silicon Valley-based firm's biggest shareholder.
The company is already involved in a separate joint venture with CMGI, Compaq, Cisco and Nokia which aims to provide broadband services to airports, hotels and convention centres worldwide.
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