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Technology Stocks : Pacific Century CyberWorks (PCW, PCWKF) -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (2375)	9/10/2000 10:09:45 PM
From: Captain Jack	Read Replies (1) \| Respond to of 4541

merry -- this just popped on my news service as an alert: Hong Kong Stocks Review: Pacific Century drags HSI 0.9% lower By BridgeNews Hong Kong--Sept. 8--Fears of massive institutional selling of Internet giant Pacific Century CyberWorks (PCCW) by key shareholders prompted a huge sell-off in the technology counter Friday, dragging the Hang Seng Index (HSI) 0.9% lower in what was otherwise a thinly-traded and lackluster session. The Hang Seng Index fell 156.50 points to 17,275.45 on turnover of H.K. $7.88 billion (U.S. $1 billion), slumping from Thursday's $11.46 billion. * * * PCCW, owned by Internet tycoon Richard Li, dominated Friday's turnover, with $1.1 billion worth of shares changing hands, equivalent to 14% of the day's entire trading volume. Most counters lost ground Friday, with a handful of banking counters rising against the market tide. Hang Seng Bank was among the gainers, rising $0.25 to $87.75. PCCW was investors' main focus of attention though, with institutional sales expected anytime soon, made worse by a planned venture capital fund in which PCCW had played a part having collapsed overnight, brokers said. PCCW and two U.S.-based partners decided to drop plans to form a fund designed to invest in emerging Internet businesses, PCCW said Friday. PCCW, technology company CMGI and venture fund Hicks, Muse, Tate & Furst (HMTF) will instead pursue a "more flexible approach for co-investment", according to the companies. (Story .10914) Brokers said the collapse had prompted concerns over PCCW's overall strategy. PCCW claimed Friday that the decision a mutual one between all the three parties. PCCW shares fell $0.65 or 4.7% to $13.20. Brokers added that overriding concerns of upcoming placements, including those related to PCCW, further pressured the benchmark index downward. Tanrich Securities equities analyst Ross Cheung said that U.K.-based telecoms company Cable & Wireless PLC was expected to dispose of some 1 billion PCCW shares, gained when the telecom company sold its Hong Kong subsidiary Cable & Wireless HKT to PCCW earlier this year. Cheung estimated this was equivalent to 4.9% of the enlarged share capital of PCCW. "PCCW is having quite a negative influence on the market. PCCW dropped below the key $14.00 level today, and we're all looking at it falling to $12.00 now. We're advising our clients to stay put and buy it when it gets lower," Cheung said. Brokers added that CMGI, PCCW's venture capital partner, was expected to place 241 million PCCW shares into the market "anytime soon", in a bid to attract investor interest before all heads turn toward the major initial public offerings (IPO) hitting the market next month. Three IPOs worth around $47 billion in total are expected in October. The companies are government-owned subway operator Mass Transit Railway Corp., China oil group Sinopec, and Chinese telecoms provider Jitong Communications. "PCCW is experiencing strong selling pressure. C&W is trying to sell it, and CMGI, so everyone's locking in profits now," said Louis Tse, executive director at Standard Capital Brokerage. Some brokers speculated that C&W might have already placed shares with major investment banks, and that selling on behalf of C&W had begun already. C&W has up to November 15 to dispose of the block of shares, according to Tanrich's Cheung. Luck!