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

To: ms.smartest.person who wrote (1126)	4/25/2001 9:56:50 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Intel Swaps Web Venture Stake for CyberWorks Shares (Update1) By Cathy Chan Hong Kong, April 25 (Bloomberg) -- Intel Corp., the world's biggest chipmaker, swapped a portion of its stake in a Pacific Century CyberWorks Ltd. Internet venture for CyberWorks shares, a move that may herald the end of their partnership. CyberWorks, Hong Kong's biggest phone company, issued 138.4 million new shares to Intel last month, the company said in its annual report. It didn't say if Intel had sold the shares. The transfer was part of an option granted Intel to swap its 40 percent stake in Pacific Century Convergence Corp. for as many as 1 billion CyberWorks shares. CyberWorks owns 60 percent of Pacific Century Convergence Corp. The companies formed the venture in 1999 to bring broadband Internet services to Asia, including the loss-making Web broadcaster Network of the World. Intel may exercise more of the options to cut its exposure to the venture's running costs. ``This tells me that Intel wants to liquefy their holdings'' in Pacific Century Convergence, Nigel Coe, an analyst at Deutsche Bank AG in Hong Kong, said. ``Intel would have to contribute to the capital expenditures and operation expenditures of Network of the World,'' which may spend as much as $200 million this year. CyberWorks has curtailed investment in Network of the World following a slide in Internet stocks. The phone company has lost almost 90 percent of its value since peaking in February 2000. ``We can't comment further on the activities,'' Josie Taylor, an Intel spokeswoman in Hong Kong, said of the share swap. ``We don't want to speculate about the future (of the) relationship.'' CyberWorks declined to comment. The new shares will add to the 77.8 million CyberWorks shares Intel already owns. The chipmaker paid $50 million, or HK$5 a share, for the stake in August 1999, its first major investment in a Hong Kong-listed company. The move comes amid plans by Intel to sell its remaining 8.6 percent stake in Sohu.com, which operates one of the biggest Chinese-language Web sites. Sohu fell below $1 a share on March 8 and may lose its Nasdaq listing as a result. CyberWorks rose 0.9 percent to HK$2.73. quote.bloomberg.com