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

To: ms.smartest.person who wrote (2654)	9/24/2000 8:15:57 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 4541

Telstra's CyberWorks Buy May Cost Extra A$400 Mln, Report Says quote.bloomberg.com By Suchita Nayar Sydney, Sept. 23 (Bloomberg) -- Telstra Corp.'s partnership with Pacific Century CyberWorks could cost A$400 million ($218 million) more than expected due to the fall in Australia's currency, the Sydney Morning Herald said, citing unidentified fund managers. Melbourne-based Telstra, Australia's biggest telecommunications company, will see the cost of its Hong Kong investment rise to A$4.2 billion, the report said, and its annual interest costs swell by A$35 million, to A$352 million, as it didn't hedge the U.S. dollar value of the purchase. Telstra bought Pacific CyberWorks assets at the peak of the market, the newspaper said. ``If they were to spend A$5 billion now they would have a lot more assets to choose from,'' the report quoted a fund manager. Telstra on Aug. 24 said it would pay $1.5 billion for 40 percent of a mobile phone venture, and an additional $1.5 billion for bonds convertible into CyberWorks shares, and would start Internet and entertainment ventures with CyberWorks. The Australian company is putting $625 million of debt into a cable network infrastructure joint venture, which reduces the net payment to CyberWorks to $2.375 billion. That equalled A$3.96 billion when the agreement was struck in April, the report said. The Australian dollar has since fallen to 54 U.S. cents from 60 cents. It has lost almost 18 percent against the U.S. dollar this year. Telstra's agreement with CyberWorks has yet to be signed, with regulatory approvals and approval from CyberWorks shareholders still pending, the newspaper said. Telstra shares have fallen 18 percent since details of the CyberWorks transaction were announced last month. They dropped 15 cents to A$5.84 on Friday. (Sydney Morning Herald, 9/23, p.24)