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

To: ms.smartest.person who wrote (1638)	7/15/2001 1:38:30 AM
From: ms.smartest.person	Respond to of 2248

PCCW (0008) not need make goodwill prov for JVs 2001-07-10 18:31 (Infocast News) Due to the drop of global telecommunication asset value, Australian investors predicted that Telstra may need to write down value of the two joint ventures, which it forms with PCCW (0008). The JVs has a total asset value of US$9.5 billion ($74.1 billion). It is worth a consideration, whether PCCW should make similar goodwill diminution of these two JVs. A local telecommunication analyst said PCCW already made a one-off $172 billion goodwill provision last year. Therefore, he predicts it does not need to make anymore provisions for the sake of its goodwill. He furthermore estimates the provisions in PCCW's results for the first half of the year will mainly come from the restructuring expenses of PCCW Japan. According to information given to investors by Telstra last year, the estimated value of Reach, the IT backbone JV, is US$6.5 billion, while the estimated value of Regional Wireless Company, the mobile phone JV, is US$3 billion. Telstra and PCCW each hold 50% in the stakes of Reach. Telstra holds 60% and PCCW holds 40% in Regional Wireless Co. The investors predict that both sides need to re-assess the above mentioned businesses. PCCW also said during its announcement in July, it may have to readjust the relevant values. Some local analysts estimate the present value of Reach to be US$2 billion, i.e., 69% less than Telstra's predicted US$6.5 billion.