Although determined to put Richard Li of PCCW (0008.HK) of the core assets, but the "thinking" is able to do so to achieve, it now appears there is still a "variable."
One of the resistance will come from the second-largest shareholder of PCCW, China Netcom (0906.HK).China Netcom has issued tough public statements, saying "do not want to see that owned and managed by the Hong Kong company or its major assets of PCCW any change in the situation" and that the acquisition could "give PCCWsignificant uncertainty of the business. "
Netcom's concerns about "extenuating circumstances."January 2005, CNC high of 10 billion 20% stake in PCCW shares, jumped from the company's second-largest shareholder.At that time, Netcom not only want to shape their own Hong Kong-based international operator's image, PCCW will also work together in areas such as broadband TV co-development of the mainland telecom market.However, PCCW Ruopi "hands" of others to this program is likely to lead to "bankruptcy."
Look at the current situation, PCCW's telecommunications and media-related assets, such as if all the capital has become the front of the "meat and potatoes."Media reports yesterday, has made a takeover offer for PCCW is not only Australia's Macquarie Bank, Newbridge Capital Group also made a similar proposal to PCCW, which bid more than 500 billion Hong Kong dollars.
Yesterday, PCCW and SUNDAY have suspended before the suspension, respectively, reported 5.2 million and 0.56 Hong Kong dollars; and major shareholder of PCCW, Pacific Century also suspended stock trading, said it would wait for its associated company PCCW issued a statement later.
If Richard Li, PCCW's core assets, the success of the sale, after which he may return to his father, Li Ka-shing again "business empire."
Currently, possession of Hong Kong's PCCW fixed-line residential and business more than 65% market share, is Hong Kong's largest fixed-line operator.However, the company has a long time in high debt, end of 2005, net debt of 25 billion U.S. dollars.Netcom, PCCW shares during the year, PCCW said it would also stand to cash in funds used for debt repayment.
For while the shot, "then set" PCCW's two companies, there are all sorts of relations with the Li Ka-shing.Foreign reports that Macquarie Bank and Newbridge Capital's executives have had close relations with the Li Ka-shing, and the cash after PCCW, Richard Li Lee family may be responsible for upgrading its image of Husky Energy, Petro-Canada.
UBS reported that the multi-party negotiation PCCW's core assets, could lead to counter-acquired Netcom.
However, some analysts believe that China Netcom may not share in the short term against the decision made, after all, this will involve a large sum of money.The news from China Netcom, overweight or underweight are currently no plans for PCCW stake.