Hong Kong's CyberWorks Denies Report That It Hired Recruiters to Replace CEO
By MATT POTTINGER
Staff Reporter of THE WALL STREET JOURNAL
HONG KONG -- Pacific Century CyberWorks Ltd. denied a report it has hired headhunters to replace Richard Li as CEO of Hong Kong's largest phone company, but the company affirmed remarks by Mr. Li that he wouldn't stand in the way of someone who could do the job better.
Alex Arena, deputy chairman of the company's executive committee, said a report in the Financial Times that recruiters were hunting for a new CEO was "on the wrong tangent." Company spokeswoman Joan Wagner also denied headhunters were seeking a replacement. "Our position is Richard Li is not stepping down. However, as Richard Li has said many times, we continue to recruit talent to the company," Ms. Wagner said.
The Financial Times quoted Mr. Li as saying, "As a shareholder, if I feel someone else would be better at putting it in the right shape for the long term, I would not hesitate." Ms. Wagner confirmed the quotes.
PCCW's stock has fallen nearly 90% since its high early last year. Its myriad investments in Internet start-ups have lost much of their value with the dot-com bust; a world-wide broadband entertainment and information service it launched last June has mostly fizzled in the marketplace.
In Hong Kong trading Wednesday, PCCW's stock closed at 2.70 Hong Kong dollars (35 U.S. cents), up 2.5 Hong Kong cents.
Mr. Li, who is also PCCW's chairman, is by far PCCW's largest shareholder, with about 35% ownership. He is also the son of one of Hong Kong's richest and most powerful men, Li Ka-shing, whose business empire encompasses real estate, container ports, retailing and telecommunications.
A year ago, the younger Mr. Li established his own reputation as a deal maker with his successful $29 billion bid to acquire Hong Kong's largest telephone company from its parent, Cable & Wireless PLC.
But the steady slide in the company's stock price has hurt that reputation. The latest blow for Mr. Li's image came when he recently confirmed that he didn't graduate from Stanford University, as had been indicated in some company materials released to the press and other parties.
-- Gren Manuel contributed to this article.
Write to Matt Pottinger at matt.pottinger@awsj.com1
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