Hong Kong bullish on PCCW telecom deal
Bidding for Hong Kong telecom PCCW was expected to remain strong despite likely opposition to the sale on the mainland.
Trading in PCCW stock resumed in Hong Kong Friday after being suspended amid a brewing bidding war between Australia's Macquarie Bank and a U.S. consortium led by private investment firm TPG Newbridge.
Analysts have projected that the suitors have been willing to pay more than $6 billion for the company, although FinanceAsia reported Friday that PCCW has called that figure "inaccurate."
Nevertheless, analysts expected a spirited competition for PCCW shares due to their relatively bargain price.
The value was expected to trump objections to the sale from China Unicom, the state-owned mainland telco that holds about 20 percent of PCCW. Beijing has voiced opposition to the sale, which would place PCCW under foreign control.
Some market observers said the objections could be smoothed over by giving China Unicom a larger piece of PCCW.
Copyright 2006 by United Press International
