Huawei puts spanner in PCCW works

12 Sep 2005

PCCW’s plan to acquire wireless operator Sunday Communications could be thwarted after China’s Huawei Technologies refused to sell its 10% stake in the company. PCCW purchased a 59.87% in Sunday in June for HKD1.16 billion; it later raised its holding to 79.35% after making a general offer for the outstanding shares. PCCW needs to secure 90% of the company to trigger a mandatory privatisation and complete the privatisation, but Huawei is believed to be keen to hold on to its shares in the hope of fostering a relationship with PCCW. PCCW could now increase its offer for the outstanding shares.

Hong Kong, PCCW Group, PCCW Mobile (formerly Sunday Communications)