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

To: ms.smartest.person who wrote (275)	2/7/2001 7:40:14 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Details Cap Telstra-PCCW Saga Brett Clegg 02/08/2001 Australian Financial Review Page 16 Copyright of John Fairfax Group Pty Ltd Telstra Corp and its Asian joint venture partner, Pacific Century CyberWorks , have unveiled the full details of their controversial $US1.8 billion ($3.3 billion) alliance, a venture which will spearhead Telstra's ambitious Asian expansion plans. In the culmination of one of the most complex deals in Australian corporate history, the partners yesterday named the management and branding of key mobile and internet protocol backbone ventures. With both businesses to be incorporated in Bermuda, the IP backbone company is to be called Reach, with the predominantly Hong Kong mobile business to be known as Regional Wireless Company. The former head of Malaysian telecommunications carrier Maxis Communications, Mr Alastair Grieve, will take up the post of chief executive of Reach, which has forecast annual revenues of $US1.9billion and operating earnings of $US500 million. Telstra's group managing director for infrastructure services and wholesale, Mr Gerry Moriarty, will assume the position of chairman of the IP backbone group. Mr Moriarty would not commit to a timetable for the mooted float of the Reach business, originally valued at $US10 billion, given the parlous market conditions for telecom capital raisings. ``Some of the comments I've seen suggest that without an IPO, Reach's growth will be limited. That's simply not correct. It has the capabilities to fund the capital expenditure that we anticipate in the business plan,'' he said, estimating this at between 10 per cent and 15per cent of revenues. ``An IPO is not a necessary part of the generic growth of Reach and there are opportunities also to bring in another partner when appropriate.'' Asked if there were discussions with a potential third investor, he said no. Analysts have trimmed Reach valuations from $US10 billion to between $US3 billion and $US4 billion, with falling prices due to heightening competition in the region. Many observers do not expect a float this year. Scepticism about a Reach IPO has been one of the cited reasons for recent pressure on Telstra's share price, which fell 9cents yesterday to $6.88. Regional Wireless Company, the former mobile telephony business of Hong Kong Telecom prior to its acquisition by PCCW, will be headed up by its existing chief executive, Mr Hubert Ng. RWC's chairman will be Mr Dick Simpson, the head of Telstra OnAir, who will also sit on the Reach board. nrstg2s.djnr.com