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

To: ms.smartest.person who wrote (842)	3/30/2001 1:28:25 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

PCCW staff escape stock free fall FELIX CHAN, MARTIN WONG and ANTOINE SO Most employees of Pacific Century CyberWorks have escaped the effects of the company's free fall - they sold their discounted shares late last year when the price soared before the hi-tech bubble burst. Some workers said on Thursday they felt fortunate to have cashed in on the discounted shares early. On Wednesday, the company reported a hefty HK$6.9 billion loss for last year, one of the biggest downturns in Hong Kong corporate history. PCCW's share price dropped to an all-time low of HK$2.975 before closing at HK$3.225 on Thursday. In August, Richard Li Tzar-kai - the second son of tycoon Li Ka-shing - made the ambitious move to buy a controlling stake of blue-chip Hongkong Telecom from Cable & Wireless. On the first day of the takeover, the company share price closed at HK$15.35 and rose to a peak of HK$28.50 as the technology dream rolled on. It took Mr Li's wealth to a huge HK$319.2 billion. That figure has now shrunk to just over HK$38 billion. PCCW worker Ann Tong said she sold her 1,000 shares late last year at HK$16 a share, reaping a windfall of HK$15,000. "I am very glad that I sold it quickly enough. Many of my colleagues also sold the discounted shares when the price was high," Miss Tong said. "But some did not sell then and now they are regretting it." In 1998, the share option scheme was offered to supplement a change in the year-end bonus policy. Under the deal, those earning HK$10,000 or more a month - about 80 per cent of the 13,000-member workforce - could buy PCCW shares at HK$1 each, up to their pay level. It meant a worker making HK$10,000 a month could claim 10,000 or less shares at HK$1 each. For those making less than HK$10,000, the company then gave them 4,000 free shares. Workers were allowed to exercise their rights and sell the shares last year. The general secretary of PCCW's Employees' General Union, Fan Kwok-fai, said most workers had already sold their shares. "But for those who didn't sell last year, if they sell today, they will still make more than HK$2 profit per share." He would not be drawn on whether the mass sell-off last year was an indication that staff had no confidence in the new management. technology.scmp.com