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To: Ibexx who wrote (73679)	6/12/2000 9:17:00 AM
From: Didi	Respond to of 152472

OT, Ibexx-re: the media It's mainly the US financial press who made a mess of it by misinterpretation - either deliberately or out from stupidily Likely the latter. Not too industrious to verify facts perhaps. Also, negativity and sensationalism sell ;-(. Not true with The Washington Post, though ;-). Gregster can vouch to this. Best, di

To: Ibexx who wrote (73679)	6/12/2000 9:25:00 AM
From: JohnG	Read Replies (1) \| Respond to of 152472

Unicom raises IPO target to $5 billion plus oversubscription rights. JohnG technology.scmp.com Monday, June 12, 2000 INTERNET Unicom lifts IPO target to US$5b ERIC NG China United Telecommunications (China Unicom) is to increase the price of its initial public offering, which would see it raise up to US$5.05 billion - before an over-allotment option - in one of Asia's biggest issues outside Japan. Sources close to investment banks arranging the offering confirmed that the target price range had been raised to between HK$13.80 and HK$16, from between HK$11.50 and HK$14.50, an increase of 10 per cent at the upper end. The company is reported to have seen demand for 1.4 times the amount of shares on offer after its roadshow in the United States, according to FinanceAsia.com, the Web site of monthly magazine Finance Asia. At the earlier price range, China Unicom - the mainland's second largest telecommunications firm - would have raised between US$3.62 billion and US$4.57 billion, excluding over-allotments. The revised range will see it raise between US$4.36 billion and US$5.05 billion. That could increase to as much as US$5.6 billion after the exercise of the over-allotment option. News of the increase in offer price follows a strong recovery in markets in the past two weeks. Since China Unicom began its roadshow on May 31, the Hang Seng Index has surged 15.2 per cent, with rival China Telecom (Hong Kong) gaining 26.1 per cent. "The general market performance has been a benefit for China Unicom," said Worldsec International director Carlton Poon. Pacific Challenge Securities research director Ricky Tam Siu-hing said he would not be surprised by a rise in China Unicom's offer price, given the general market recovery and China Telecom's strong comeback. "When China Unicom first launched its roadshows, the market response was not very enthusiastic, as some people thought the company's earnings were still heavily reliant on its paging operation, but China Telecom (HK)'s strong rebound has helped lift sentiment," he said. France Telecom's acquisition of British mobile-phone network Orange last month also raised valuations for telecoms firms, benefiting China Unicom, he added. The flotation is part of Beijing's attempts to turn China Unicom into a credible competitor to dominant China Mobile, the recently renamed parent of China Telecom (HK). China Unicom, which has cellular, paging, fixed-line and data communications operations, is expected to complete its international and public share offers on Thursday, with final pricing scheduled for Friday. Trading in the company's American Depository Shares will start in New York on June 21, while trading in Hong Kong is expected the following day. Co-sponsors for the public offering are Morgan Stanley Dean Witter and China International Capital Corp. Hutchison Whampoa became a strategic investor in China Unicom earlier this month, when it agreed to take up about 2 per cent of the enlarged share capital for US$400 million. Talks also have reached advanced stages with some leading telecoms players outside Asia seeking to be a part of China Unicom, according to sources. Meanwhile, China Daily has reported that China Unicom's parent, China United Telecommunications Corp, said that as of June 5 the number of subscribers to its mobile network had reached 10.1 million, or 14 per cent of the domestic market. "Our subscribers will be somewhere between 15 million and 18 million by the end of this year," vice-president Lu Jianguo was quoted as saying. "We will control 35 per cent of the domestic market in 2005." The firm also offers domestic and long-distance phone services over Internet protocol (IP) networks. It plans to expand coverage of its IP-based phone service to 220 cities this year.