In late January 2000, Cable & Wireless Plc (C & W) and Singapore Telecommunications Ltd (SingTel) submitted a proposed merger of equals between the wired and wireless HKT (HKT) and SingTel. Both HKT and SingTel were the leading telecom operators in their local markets, as well as the merger of the two would create the second largest full-service telecommunications provider in Asia outside Japan. However, the proposed transaction was received coldly in Hong Kong and Singapore, due to uncertainty over its political and financial implications. C & W is expected that the Chinese government would prefer to keep control of HKT to local investors and were, therefore, the possibility of receiving offers from potential suitors in Hong Kong, possibly including Pacific Century CyberWorks Ltd. (PCCW). To reply to SingTel or any other potential bidders, C & W was prepared to negotiate and find the fair value of its interest in HKT. "Hide
Su Han Chan, Ko Wang, Maria Ho Source: University of Hong Kong, 25 pages. Publication Date: January 24, 2002. Prod. #: HKU174-PDF-ENG
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