NEWSMAKER-Richard Li, HK's "Superboy", comes down to earth
Reuters, 03.28.01, 8:39 AM ET
HONG KONG, March 28 (Reuters) - Hong Kong's once high-flying Richard Li, whose youth, pedigree and billion-dollar-dealmaking made him a local icon, is looking decidedly more human these days.
Days after he said he never graduated from a top U.S. university as claimed in press materials distributed by his company Pacific Century CyberWorks <0008.HK>, Li dropped yet another bombshell that may make shareholders wince.
On Wednesday, the telecoms and Internet firm reported a consolidated net loss of US$886 million (HK$6.91 billion) for year 2000 -- worse than analysts' already grim expectations.
The combined results were the first reported by PCCW since it acquired Cable & Wireless HKT last year in a US$28.5 billion deal that was Asia's largest-ever corporate takeover.
PCCW shares ended down 0.71 percent at HK$3.475 on Wednesday, hardly a shadow of its HK$28.50 high in February 2000.
Popularly dubbed "Superboy" by the Hong Kong media for all his business exploits, Li's fall has been a painful one.
A year ago, Li was seen as a saviour when he outbid rival Singapore Telecommunications for HKT, but as local euphoria surrounding HKT's takeover waned and global tech and telecom shares tanked, shareholders' praise soon turned to criticism.
PRAISED BEFORE, NOW RIDICULED
Perceived as Hong Kong's leading young entrepreneur, the younger son of tycoon Li Ka-shing, the territory's richest man, has not been spared punters' collective anger over their shattered high-tech dreams.
A local publisher recently came up with what appeared to be a thinly-veiled comic book spoof of the 34-year-old entrepreneur, ridiculing the very exploits which won Li rich applause not so long ago.
Much worse, however, was to come.
Li came under harsh spotlight of both local and foreign media last week when he confirmed newspaper speculation that he never graduated from the prestigious Stanford University.
Reams of press materials distributed by PCCW said Li was "educated in the U.S. and graduated from Stanford University with a degree in computer engineering."
His shock statement, which reportedly sent his staff scrambling to scrub out the error from a company website, riveted the territory and newspaper editorials spent days dissecting the news.
Observers debated over whether the news would damage PCCW's broader credibility.
Many wondered why the company -- famous for fussing over the most minor of misreported details in newspapers -- never tried to correct his mistaken academic credentials.
Li on Wednesday spoke to analysts, but did not attend a news conference afterward, leaving his colleagues to face the music.
"The purpose of this meeting is to address the financials, and we have the full team of financial people here to answer your questions," said deputy chairman Francis Yuen, when asked by a member of the 100-strong media pack about Li's absence.
Repeatedly pressed by reporters on whether the flap would hurt the company, Yuen finally obliged with: "Our partners, the way they look at it, they are looking at the way the management behaves...the professionalism that we display in our dealings. People will be judging us on this."
If financial analysts were curious about Li's academic record, they chose not to ask him about it at their briefing.
"We still want to live in Hong Kong," said one company watcher, who declined to be identified.
GLORY DAYS
Li cut his deal-making teeth building Star TV into Asia's first satellite broadcasting service with a loan from his father. He then sold it to News Corp for US$950 million in 1995 and turned his attention to the Internet.
He sparked a frenzied buying spree for Hong Kong technology stocks in April 1999 when he announced he would turn sleepy telecommunications equipment distributor Tricom Holdings into Asia's premier Internet company under the name PCCW.
The stock roared to a 1,286 percent gain in a single day.
His business acumen and background easily won him a US$12 billion loan last year to help buy HKT and the Hong Kong government even awarded PCCW, without competitive bid, the right to develop the "CyberPort" office, retail and residential complex.
Those victories must now seem like faded memories, but investors no doubt are hoping his fortunes will some day soar again.
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Copyright 2001, Reuters News Service.
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