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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (58760)	1/14/2002 1:57:56 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

I am not sure what this means nor it's impact. Monday January 14, 1:00 PM PCCW parent to issue US$100-million bonds to Intel unit sg.news.yahoo.com HONG KONG (Reuters) - Pacific Century Regional Developments Ltd said on Monday it would issue US$100 million in exchangeable bonds due 2006 to 2007 to Intel Capital Corp, a unit of U.S. semiconductor giant Intel Corp. PCRD, the parent of Hong Kong telecoms and Internet firm Pacific Century CyberWorks, said in a statement the bonds allowed holders to exchange into PCCW shares at HK$2.50 each, representing 1.4 percent of existing PCCW shares. PCRD currently holds a 33.5 percent stake in PCCW. Both firms are controlled by 35-year-old tycoon Richard Li. Peter Allen, chief financial officer of PCRD, said the deal improves PCRD's financial flexibility and "gives us a solid investor that we would like to have as a long term investor in PCCW." Allen said the rationale for the deal is similar to that of a US$250 million exchangeable bond it issued in October to private investors including units of insurance giant American International Group Inc and AIG-sponsored funds. "We're keen on these financial instruments, but only with the right kind of partners where we see there's some strategic value in the relationship," Allen said in a phone interview. Intel spokeswoman Josie Taylor said, "we continue to invest in companies that accelerate the Internet economy." The coupon on the bonds is payable semi-annually on the principal value of the bonds at a rate of three percent per annum, PCRD said. PCCW shares dipped 1.1 percent on Monday to HK$2.25, while PCRD shares were unchanged at S$0.63.