Shares of PCCW rise following buyout offer

Print   Email

An agreement has been reached between tycoon Richard Li and China Netcom Group - the two largest shareholders of PCCW - to buy out other shareholders.

News provided by Ansarada, secure virtual dataroom providers.

The deal would mean China Netcom Group would become a private company, Reuters reported a newspaper as saying.

Shares of Hong Kong's dominant fixed-line operator PCCW rose by over a third on Wednesday (November 5th) after chairman Richard Li announced a USD$1.9 billion (AUD$2.7 billion) buyout offer by major shareholders.

Commenting on the activity, Alex Tang, a research director at Core Pacific-Yamaichi International, said: "We can see some opportunistic buying but there are still uncertainties over whether the deal can go through, as existing shareholders find the offer a bit low."

He said that because the market was at a very low level, it could trend higher towards the end of the year.

PCCW is the largest and most comprehensive communications provider in Hong Kong and one of Asia's leading players in ICT.