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Technology Stocks : PCW - Pacific Century CyberWorks Limited

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To: ms.smartest.person who wrote (455)	2/25/2001 10:35:51 PM
From: ms.smartest.person	of 2248

Deal with Hutchison raises hopes for stock Monday, February 26, 2001 STAFF REPORTERS The announcement that Richard Li Tzar-kai's Pacific Century CyberWorks (PCCW) has bought a satellite business owned by his father Li Ka-shing's Hutchison Whampoa has triggered speculation the recent PCCW share price slump has ended. In the deal, announced on Thursday, PCCW will take control of Hutchison Telecommunications Technology Investment Group in exchange for 183.5 million PCCW shares valued at HK$4.375 per share, representing a 0.83 per cent stake in PCCW. Although Mr Li senior said last month that it would be "almost impossible" to take a stake in his son's beleaguered telecoms and Internet vehicle, the market interpreted the latest news as a tacit show of support and sent PCCW stock 4 per cent higher on Friday. Analysts said this could mark a turning point for the stock, down 82.73 per cent since a high of HK$26.35 last February. "Since Hutchison has bought at HK$4.37, this could signal to investors this is the bottom for the time being," said Alex Tang Yee-yuk, head of research at Core Pacific Yamaichi Securities. Celestial Securities research head Herbert Lau Chung-kwan said that, at the very least, the price tag for the shares could provide a useful guide for investors who have been made dizzy by recent fluctuations of PCCW shares. "No one knows the true market value of CyberWorks shares because the shares have been quite volatile over the past few months," he said. "Right now we have a floor price for CyberWorks so many investors believe the shares should bottom at this level." Mr Lau said the HK$4.37 price would also act as a useful benchmark for pricing a 14.9 per cent stake in the company owned by Britain's Cable & Wireless. The PCCW shares held by C&W are treated by investors as an overhang and speculation has been rife as to how and to whom they would be disposed. biz.scmp.com

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