PCCW drops plan to invest in Vivacom

19 Aug 2010

Hong Kong-based PCCW has abandoned plans to invest in heavily indebted Vivacom, Bulgaria’s largest telco, reports Bloomberg quoting PCCW managing director Alex Arena. CommsUpdate reported in June that a deal for the sale of Vivacom, to Richard Li, chairman of PCCW, had been expected to be finalised shortly. Li inherited control of Vivacom in March as part of the acquisition of AIG Investments, a unit of the troubled US insurance group. The unit was renamed Pinebridge Investments ahead of the takeover by Li’s Pacific Century group. Vivacom, which has about USD2.4 billion of debt, may breach its loan agreement as its profit was deemed insufficient compared with its borrowings, sources said. The operator’s creditors include RBS, Deutsche Bank and RZB.

Bulgaria, PCCW Group, Vivacom (BTC)