News Corp considers joining PCCW bid
29 June 2006
Star Group, a wholly owned subsidiary of Rupert Murdoch's News Corp, has had discussions about joining Macquarie Bank's US$7 billion bid for PCCW's core telecommunications and media assets. It will be Murdoch's second attempt to gain a stake in Hong Kong's biggest fixed-line and broadband business after News Corp lost a takeover battle in partnership with Singapore Telecommunications for Cable & Wireless HKT to PCCW in 2000. China Network Communications Group, or China Netcom, a Chinese state-owned phone operator with a 20% stake in PCCW, publicly opposes the sale. Murdoch was a nonexecutive director on the board of China Netcom's Hong Kong-listed subsidiary until last September and has been retained as an adviser to the board.