PCCW’s second largest shareholder China Netcom is planning to buyout other shareholders in lieu of low share prices reportedly. Further, the parties are expected to put forward a proposal in an emergency board meeting while HSBC would arrange financing for the deal. According to an insider, “The sense of the board is that they will be presented with a take-private transaction led by the two lead shareholders and that is already creating controversy at the board level.” Some members believes that a takeover deal have to be offered at about HK$6 a share but wondered if PCCW’s Chairman Richard Li and Netcom would bid that high. The stock sinks as low as to HK$2.45 which is the lowest level since 1999, after PCCW ends sale of stake in its new HKT unit.
Wireless Federation » Netcom intends to take over PCCW-Report (Hong Kong)
Netcom intends to take over PCCW-Report (Hong Kong)
- October 15th, 2008
- 6:43 am
