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

To: ms.smartest.person who wrote (964)	4/3/2001 11:56:51 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

C&W LOSES POUNDS 3.7BN IN PCCW SALE 2001-04-04 Terms and Conditions CABLE & WIRELESS expects to gain just $ 1.5bn (pounds 1bn) net from offloading its remaining 14.7 per cent stake in Pacific Century CyberWorks through an exchangeable bond. The 3.3 billion shares C&W holds in PCCW had been worth around pounds 4.7bn when it acquired them last August. The extra pounds 1bn cash is expected to boost C&W's resources to about pounds 7bn and is likely to reinforce the company's status as a bid target for indebted telecoms groups. Investors are also likely to step up their crusade for the cash to be returned. C&W originally ended up with a 20 per cent stake, or around 4.5 billion shares, in PCCW when it sold its 54 per cent stake in Hongkong Telecom to PCCW in a cash-and-shares deal last summer. Since then, C&W has reduced its holding in PCCW to 14.7 per cent by selling 5 per cent and by exchanging some stock for shares in CMGI, the US incubator. The deal has proved very costly for C&W as PCCW shares have since collapsed in value. When the deal was struck, PCCW shares were trading at about HK$ 15.80, valuing C&W's total stake at around pounds 6.3bn. Since then, the shares have fallen to almost HK$ 3, valuing the original 20 per cent stake at nearer pounds 1.3bn. Yesterday, C&W said PCCW had waived its share lock-up, freeing it up to sell its entire 14.7 per cent stake. This has permitted the issue of zero coupon bonds exchangeable into the PCCW shares. C&W said the minimum exchange price for the bonds had been set at HK$ 3.6. Terms and Conditions Copyright© 2000 LEXIS-NEXIS, a division of Reed Elsevier Inc. All rights Reserved. quamnet.com