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

To: ms.smartest.person who wrote (1226)	5/17/2001 11:16:44 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

New chief seen as crucial for CyberWorks Friday, May 18, 2001 BEN KWOK If Richard Li relinquishes daily operational control at PCCW, it will enable the company to concentrate better on articulating its growth strategy for the future, analysts say. The possible appointment next year of a new chief executive with a strong telecom background is seen as crucial for the future running of the business, particularly after the departure of some senior managers over the past nine months, they say. Former deputy chairman Norman Yuen Kay-tong left to join red-chip Citic Pacific and executive director George Chan Ching-cheong left his job running Network of the World (NOW), the broadband content provider that Mr Li created. Another outgoing deputy chairman - Peter To - will still sit on the board of directors. Market watchers have for months expected CyberWorks to bring in more telecoms experts to help run the company, which has seen its share price battered over the past year. Many want to see a clearer strategy for the future, particularly about NOW. Mr Li publicly said CyberWorks would announce more details about NOW before the end of next month. When their annual report was published last month, CyberWorks said it would enter its "next stage of more focused development, whereby management will be leveraging the combined group's telecommunications assets and alliances", but without being specific. "Mr Li stepping back has both a good and bad effect, and overall it's neutral," said Edward Fung, an analyst at Kim Eng Securities. "On the plus side, he has not delivered much to the company so we will pin hopes on the new CEO. But his stepping back could also be interpreted that he lacked confidence in delivering what he promised in past years." Credit Suisse First Boston telecoms analyst Niq Lai said: "Mr Li's move is a natural progression for a mature company. It is expected that the company would hire an experienced and senior executive to make some serious decisions." John Lai, chief investment officer for Nikko Global Asset Management, said: "CyberWorks is a disappointing company. We have not seen a coherent growth strategy, not to mention a consistent earnings pattern for a long time. "We do not know how many super-CEOs can turn around the company and trigger a stock re-rating." If Mr Li does step back, analysts also expect to see a more clear-cut action on staff lay-offs. Mr Li promised not to cut a single member of staff from the telecom operation within the first year. That promise will expire in August. By hiring a new chief executive, analysts say CyberWorks' corporate structure would be similar to Hutchison Whampoa - where Mr Li served as deputy chairman until last August - with ownership and company control separated. -------------------------------------------------------------------------------- SCMP.com is the premier information resource on Greater China. With a click, you will be able to access information on Business, Markets, Technology and Property in the territory. Bookmark SCMP.com for more insightful and timely updates on Hong Kong, China, Asia and the World. Voted the Best Online newspaper outside the US and brought to you by the South China Morning Post, Hong Kong's premier English launguage news source. -------------------------------------------------------------------------------- Published in the South China Morning Post. Copyright © 2001. All rights reserved. technology.scmp.com