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

To: ms.smartest.person who wrote (890)	4/1/2001 5:43:19 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

"Superboy" Li Loses Magic Powers HONG KONG, Mar 29, 2001 -- (Reuters) Hong Kong "Superboy" Richard Li, whose youth, pedigree and billion-dollar-deals made him a local icon, appears to have lost his magic powers. Poor consolidated results for 2000 hammered shares in his Internet and telecom Pacific Century CyberWorks Ltd <0008.HK> on Thursday to their lowest level since PCCW acquired Cable & Wireless HKT in August in a $28.5 billion deal that was Asia's largest corporate takeover. The business setback came hard on the heels of Li's admission that he never graduated from California's prestigious Stanford University -- as claimed in materials distributed by his company. "Can things get any worse for Richard Li," the iMail newspaper wondered on Thursday. Li has dodged the media since his embarrassing degree flap, and drew a volley of criticisms from Hong Kong newspapers on Thursday for not attending PCCW's media briefing after its results bombshell on Wednesday. "Mr Li's credibility, and the credibility of his colleagues and his company, are on the line and hanging in the balance," the iMail editorial said. PCCW, Hong Kong's dominant telecommunications firm, had a consolidated net loss of $886 million (HK$6.91 billion) for year 2000 -- worse than analysts' already grim expectations. They were the first combined results since PCCW bought Cable & Wireless HKT. Investors dumped PCCW shares on Thursday, driving down the price by 6.47 percent to close at HK$3.25 after an earlier plunge of more than 14 percent to HK$2.975, its lowest since PCCW took over HKT. Li, once thought to have the legendary "Midas" touch of his super-rich father tycoon Li Ka-Shing, has watched as PCCW's price plummeted from its HK$28.50 high in February 2000. As at Thursday's close, the slide had erased HK$5 billion ($641 million) from PCCW's market value. Li's fall from investor grace has been painful. Merely a year ago, he was seen as a savior when he outbid rival Singapore Telecommunications for HKT, but as local euphoria surrounding HKT's takeover waned and global tech and telecom shares tanked, shareholders' praise soon turned to criticism. PRAISED BEFORE, NOW RIDICULED Perceived as the star young entrepreneur, whose father is the territory's richest man, Li has faced punters' collective anger over their shattered high-tech dreams. A local publisher recently came up with a thinly-veiled comic book spoof of the 34-year-old entrepreneur, ridiculing exploits which won Li rich applause not so long ago. Worse, however, was to come. Li was raked over the coals by the local and foreign media last week when he confirmed reports that he had attended but never graduated from Stanford. Reams of press materials distributed by PCCW said Li was "educated in the U.S. and graduated from Stanford University with a degree in computer engineering." His shock statement riveted Hong Kong and focused newspaper ridicule on the young tycoon. Observers debated whether the news would damage PCCW's broader credibility. A nervous Li on Wednesday spoke to analysts, but did not attend a news conference afterward, leaving his colleagues to face the music. On Thursday, an obviously cooler and calmer Li held another briefing with analysts but still avoided the media and security guards in his building barred reporters from entering elevators. "Richard Li...said last week that since his company, Pacific Century CyberWorks, is listed, transparency is 'most important'. But transparency has hardly been the dominant feature of the company recently," the iMail opined. If financial analysts were curious about Li's academic record, they chose not to ask him about it at their briefing. "We still want to live in Hong Kong," said one company watcher, who declined to be identified. (C)2001 Copyright Reuters Limited. All rights reserved. Republication or redissemination of the contents of this screen are expressly prohibited without the prior written consent of Reuters Limited. insidechina.com