| Latest Forum Topics / Pacific Century Last:0.325 -- |
 Post Reply
|
|
Bidding war for assets of PCCW
|
|
|
Nostradamus
Supreme |
09-Aug-2006 21:03
|
|
x 0
x 0 Alert Admin |
PCRD will earn HK$9.2b from Mr Leung's offer for PCCW. TPG Newbridge has offered to take PCRD private by offering minority shareholders $0.30 a share. But volumes are high and the price is higher than $0.30. Why? Because hedge funds are gambling that PCRD will remain listed in the short term. Hedge funds are pressuring PCRD to distribute a chunk of the HK$9.2b in the form of a special dividend. This month's vote on the offer is widely expected to fail because Mr Leung's offer implies a value of $0.47 a PCRD share. |
| Useful To Me Not Useful To Me | |
|
teeth53
Supreme |
14-Jul-2006 20:38
Yells: "don't learn through life, learn to grow with life " |
|
x 0
x 0 Alert Admin |
Ah Long to Ah long type of business, then pay back with interest added. How good memm.. i oso want to let my company, then pay me back with 6.5% interest yah...I no need to work liao...just collect oni. |
| Useful To Me Not Useful To Me | |
|
|
|
|
zhuge_liang
Supreme |
12-Jul-2006 21:42
|
|
x 3
x 0 Alert Admin |
Agree. Market is definitely disappointed. Just a stake sale from PCRD to Francis Leung. No takeover. Selling price below that of the 2 bidders. No fat pay-out. |
| Useful To Me Not Useful To Me | |
|
Nostradamus
Supreme |
11-Jul-2006 18:15
|
|
x 2
x 2 Alert Admin |
With the purchase, Francis Leung has bought the entire PCRD stake of 22.66% from Richard Li. There's likely to be some disappointment over: - PCRD's selling price of just 8% premium over PCCW's last traded price - there will be no takeover of PCCW - there's little likelihood of a fat pay-out But Richard Li is expected to have big plans for PCRD, which is his only listed vehicle here. |
| Useful To Me Not Useful To Me | |
|
Nostradamus
Supreme |
11-Jul-2006 11:09
|
|
x 1
x 2 Alert Admin |
Former Citigroup banker Francis Leung and a group of HK investors paid HK$9.2 b (S$1.9 b) for 23% of PCCW. The sale was endorsed by China Netcom. The Chinese company had opposed foreign bids as it was against overseas ownership of industries which the government views as strategic. Mr Leung will pay HK$6 a share. |
| Useful To Me Not Useful To Me | |
|
|
|
|
zhuge_liang
Supreme |
03-Jul-2006 19:36
|
|
x 1
x 0 Alert Admin |
The bidding war intensifies. Chinese state-owned companies Citic and China Netcom plan to bid jointly for PCCW's phone business, citing concerns that foreign suitors could takover the operation. Citic is getting involved out of a sense of "social responsibility" because it doesn't want HK citizens to be affected if new foreign owners don't run the service well or raise phone rates. The Citic-China Netcom consortium is mainly interested in PCCW's fixed-line business and its mobile phone unit Sunday Communications. |
| Useful To Me Not Useful To Me | |
|
zhuge_liang
Supreme |
02-Jul-2006 19:05
|
|
x 1
x 0 Alert Admin |
The Financial Times reported that TPG Newbridge offered US$7.55 b for PCCW. It also noted that Richard Li could privatise PCCW at a 30% premium by paying off the telecom division's US$3.1 b borrowings, leaving the company with US$4.2 b cash or HK$4.75 a share. Li could then add a further HK$1.55 per share, being the value of PCCW's property assets, bringing the total to HK$6.30 a share, which represents only a 7% premium to China Netcom's HK$5.90 cost. This is the total PCCW will get if it's broken up and sold. This means that China Netcom would actually have lost money on the deal, after factoring opportunity costs. The Chinese firm bought a 20% stake in PCCW only last year at a premium to market then. China Netcom opposes the sale because it may not be profitable and also it doesn't want PCCW to be in foreign hands. The HK$40-50 b price tag (implying about 7x EV-Ebitda) earlier bandied about for PCCw appears to be not only not too high, but may well be exceeded, now with growng prospect of a bidding war. The bids have to be raised to win over China Netcom's approval. |
| Useful To Me Not Useful To Me | |
|
zhuge_liang
Supreme |
29-Jun-2006 11:16
|
|
x 1
x 0 Alert Admin |
Pac Cent's Hong Kong associate PCCW, is also considering a possible rival bid from US buyout firm Texas Pacific Group's TPG-Newbridge arm. It is offering US$7.55 b, compared to the Macquarie/ News Corp offer of US$7.3 b. The bidding war may be escalating, with a group of 3 private equity investors - Ashmore Investment Mgt, Spinnaker Capital Group and Clearwater Capital Partners - reportedly ready to join the fray. |
| Useful To Me Not Useful To Me | |
|
|
|
|
zhuge_liang
Supreme |
28-Jun-2006 19:20
|
|
x 2
x 2 Alert Admin |
News Corp. has joined Macquarie Bank in a US$7 billion bid for the telecommunications and media assets of PCCW, Hong Kong's largest phone company, the Australian newspaper reported. PCCW said in a regulatory filing with the U.S. Securities and Exchange Commission it hasn't set a time limit for considering bids from possible buyers.
Separately, China Network Communications Group Corp., the second-largest shareholder of PCCW, will talk to bidders for PCCW's assets only if their plans are approved by the PCCW board, the Ming Pao Daily reported, citing people close to the Chinese company. Television Broadcasts Ltd., Hong Kong's biggest broadcaster, slumped 0.6%, to HK$46.95. The company denied speculation that it's in takeover discussions with PCCW Ltd. Janet Wan, a TVB spokeswoman, said yesterday the company is not aware of ``any talks between TVB officials and Richard Li,'' the company's chairman. This bidding war will cause Pac Cent's price to rise. |
| Useful To Me Not Useful To Me | |