PCCW bidding war waits on Beijing
26 June 2006
Bidders looking to take over PCCW Ltd., Hong Kong's dominant phone operator, are now looking to Beijing for a signal of where the government stands, the Wall Street Journal reported. In a deal that could be valued at more than US$7 billion, bidders Macquarie Bank of Australia and Texas Pacific Group of the US are looking to get China Network Communications Group Corp (China Netcom), China's state-run phone operator, on their side after public objections last week. The phone operator has a 20% stake in PCCW but its objections to the deal may reflect concerns in Beijing over Hong Kong's main phone operator � along with its lines and assets � being bought out by foreigners. PCCW does not need China Netcom's consent to go ahead with any deal.
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