PCCW shareholders fail to agree pricing for ownership deal

27 Oct 2008

Reuters reports that PCCW Group chairman Richard Li and the Hong Kong telco’s largest overseas shareholder China Netcom (which recently merged with China Unicom) have failed to agree over the pricing of a proposed joint buyout, according to an unsourced story in the South China Morning Post. China Unicom had considered an initial offer of HKD4 (USD0.52) a share to take PCCW private, while minority shareholders have said they will not accept less than HKD5 a share. Earlier this month PCCW’s shares fell to their lowest level since 1999, HKD2.45, after the firm cancelled a plan to sell off 45% of its core assets via a newly formed unit, dubbed HKT Group Holdings. Brighter news arrived over the weekend with the announcement that PCCW had secured the second fixed line licence in Oman, via a local joint venture.

Hong Kong, China Netcom, China Unicom, PCCW Group