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

To: ms.smartest.person who wrote (1601)	7/12/2001 12:25:05 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

STOCKWATCH - PCCW unchanged amid reported plan to raise bond issue 2001-07-11 Terms and Conditions Pacific Century CyberWorks shares were unchanged this morning as investors disregarded a report that it plans to raise the amount of its proposed bond issue to 3.8 bln usd from 2.5 bln, dealers said. At 11:12 am, PCCW was unchanged at 2.35 hkd, on volume of 7.51 mln shares. The Hang Seng Index was down 19.96 points at 12,670.72. Eric Tomter, an analyst with Dresdner Kleinwort Wasserstein, said the bond issue should help PCCW roll over some its long-term debts, which include the 4.70 bln usd in bank loans for the takeover of Cable & Wireless HKT last year. "Some of its debt will gradually become mature in 2005, 2006 and 2007... it would be nice if PCCW can roll over those debts," he said. The bonds will be unconditionally guaranteed by its fixed line unit PCCW-HKT Telephone Ltd. Credit rating agency Standard & Poor's has assigned a 'BBB' rating to the proposed bond issue. "That's the only way PCCW can issue a bond. Investors would only feel comfortable about its fixed line business," he said. He said PCCW will continue to heavily rely on its fixed line business as it is streamlining its other unprofitable operations as a result of the difficult environment for internet-related business. In its recent attempt to cut costs, PCCW has decided to lay off 340 employees in its internet services division. Meanwhile, the company will also cap its investment in its internet services division from an initial target of 200 mln usd per year to a total investment of 100 mln usd in the 2002-2003 period. Tomter said his brokerage rated PCCW a "sell", as the telecom conglomerate could do little to improve its business in the short term. "From this perspective, PCCW is still overvalued and it could drop to 1. 50 hkd," he said. wl/pb For more information and to contact AFX: www.afxnews.com and www.afxpress.com Terms and Conditions Copyright© 2000 LEXIS-NEXIS, a division of Reed Elsevier Inc. All rights Reserved.