[00-2-28] SingTel Backs Out Of C&W HKT Merger Talks
By Adam Creed, Newsbytes.
SINGAPORE,
28 Feb 2000, 11:41 PM CST
SingTel Backs Out Of C&W HKT Merger Talks 02/28/00 SINGAPORE, 2000 FEB 28 (NB) -- By Adam Creed, Newsbytes. Singapore Telecommunications Ltd (SingTel) has backed out of merger talks with fellow Asian telecommunications provider Cable & Wireless HKT, while the Hong Kong carrier continues discussions with an Asian Internet content company.
The merger would have brought together two of the largest telecommunications providers in the Asia Pacific region - two companies that are facing increasing competition in their home nations as telecoms liberalization progresses.
Instead, Cable & Wireless HKT is continuing merger talks with Pacific Century CyberWorks (PCCW), the Asian technology joint venture between Intel Corp. [NASDAQ:INTC] and Richard Li's Pacific Century Group.
The end of talks is a disappointment for SingTel, which believes the merger would have helped both companies grow their businesses in Asia.
“Naturally we are disappointed," said Brigadier General Lee Hsien Yang, president and CEO of SingTel. "We acknowledge the decision which has been made by the board of Cable & Wireless Plc regarding our offer. However, we remain convinced, not only of the compelling commercial logic of our proposals, but also of their solidity and stability."
Cable & Wireless HKT is 54 percent owned by the UK's Cable & Wireless Plc.
SingTel said it would continue to seek strategic alliances and joint ventures in Asia, and today signed one such alliance for the development of broadband and mobile Internet services with media giant News Corporation.
Reported By Newsbytes.com, newsbytes.com
23:41 CST
(20000228/WIRES ASIA, TELECOM/)
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