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Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (64)	1/14/2001 2:27:13 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

BUSINESS: CyberWorks may delay IP spin-off Pacific Century CyberWorks could be forced to delay a spin-off of the Internet protocol (IP) backbone joint venture with Australia-based Telstra, according to analysts. Sluggish investment sentiment on global telecommunications stocks would make a successful spin-off difficult, analysts said. The lower competitiveness and heavy financial pressure contributed to the internal risk for the joint venture's initial public offering (IPO), analysts said. An analyst at a European brokerage house said CyberWorks and Telstra's IP backbone joint venture had a higher unit cost than its direct competitor Asia Global Crossing which would substantially lower its competitiveness, and affect the sale of its shares. CyberWorks and Telstra originally intended to list the joint venture by the middle of this year to help reduce debt and raise additional capital for investments, but analysts said such plans would have to be postponed. Analysts said CyberWorks would need to substantially cut its valuation on the venture if it wanted to proceed with the IPO. CyberWorks valued its IP backbone joint venture at US$6 billion, compared with rival Asia Global Crossing's US$3.9 billion market capitalisation when it listed last October. Revising earlier comments, CyberWorks' deputy chairman Francis Yuen Tin-fan said the listing plan was yet to be decided. "We will wait until the joint venture is established in mid-February then discuss the listing schedule," Mr Yuen said. "It's too early to say when we can list it, but of course we would like to go for an IPO as soon as possible." Shares in CyberWorks fell to new lows yesterday on concerns over its financial pressures. It fell 12.5 HK cents, or 2.67 per cent, to close at HK$4.55. -------------------------------------------------------------------------------- asia.dailynews.yahoo.com