The Xinhua News Agency leaves New Tel and Martino to fend for themselves!
``We do not understand this comment from Golden Tripod,''
said Domenic Martino, a New Tel director. ``We suspect it's
because New Tel has been able to secure this deal ahead of
China.com.''
New Tel, Shares Booming, Rejects Claim It Isn't Linked to China's Xinhua
By Duncan Craig
New Tel Rejects Contention it Isn't Linked to China's Xinhua
Sydney, Jan. 13 2000(Bloomberg) -- New Tel Ltd., an Australian
telecommunications company whose stock surged on news of its
agreement with China's Xinhua news agency, denied a rival's
claim that the pact doesn't exist.
New Tel shares more than doubled since Jan. 1, when it said
it signed an agreement with Xinhua Holdings Ltd., described by
the Australian company as a unit of the state-owned Xinhua news
agency. Some investors said the company's Xinhua connection will
give it better access than rivals to a Chinese Internet market
that is expected to grow to $12 billion within two years.
The stock kept rising even after Golden Tripod Technology
Ltd., which also said it's a Xinhua unit, said on Jan. 10 that
New Tel ``is not associated in any way'' with the official
Chinese news agency. Golden Tripod owns a stake in China.com
Corp., a Chinese-language online news provider in which the
Xinhua news agency owns a 10 percent stake.
New Tel officials disputed Golden Tripod's contention.
Chief Executive Peter Malone called it ``wrong'' and said New
Tel's Xinhua link has never before been called into question.
New Tel said it has paid a deposit and is still appraising the
details of its web site purchases.
>b>``We do not understand this comment from Golden Tripod,''
said Domenic Martino, a New Tel director. ``We suspect it's
because New Tel has been able to secure this deal ahead of
China.com.''
Since its public debut in July, China.com has entered into
a number of joint ventures, and last month it set aside US$10
million to fund Internet startups over the next six months.
China.com
China.com officials weren't immediately available for
comment. New Tel plans to make an official statement to the
Australian Stock Exchange today, the chief executive said.
In November, New Tel said it planned to raise A$200 million
(US$131 million) on Nasdaq to fund the purchase of the Chinese
language Web sites and online access providers. Malone said he
planned to present a document to investors next month, outlining
the Chinese web sites it plans to purchase. By the end of
February New Tel hopes to proceed with its share offer in the
U.S.
New Tel plans to initially carry content from 18 Chinese
government World Wide Web sites and own 35 percent to 50 percent
of each site. The company estimated the market for Internet
services in China will grow to US$12 billion in two years.
Malone also said that An Zhou, a director of New Tel, has
been a senior officer at the Xinhua news agency for 20 years and
that New Tel already has 25,000 phone customers in China,
secured through an agreement with Xinhua. That agreement was
signed two years ago.
New Tel's American depositary receipts rose 11.9 percent
Wednesday to US$15 15/16, while its Australian shares jumped
17.4 percent today to A$2.60. |
