Not directly related with CMGI but with PCCW:|
Wednesday April 12 12:23 AM ET
Telestra Aims for Asia Alliance
SYDNEY, Australia (AP) - Telstra Corp. announced Wednesday it is in an advanced stage of
preparing a memorandum of understanding with Hong Kong's Pacific Century CyberWorks to
form an Asia-Pacific telecom alliance.
The deal would be Telstra's most significant expansion into Asia and would give it new growth
options outside the highly competitive Australian telecom market.
Pacific Century CyberWorks, which aims to use its satellite technology to become the main
broadband Internet service provider in Asia, is a unit of Pacific Century Regional Development of
Australian newspaper The Financial Review reported Wednesday
Telstra was preparing an Asian alliance worth $3 billion.
``The fact that they are in talks with Cyberworks in Asia shows that
Telstra is now in a position where they realize there are advantages
in trying to build their business beyond the boundaries of Australia,'
Jamie Spiteri, broker with Shaw Stockbroking Ltd. in Sydney said.
Trading of both companies' shares was halted. The Hong Kong exchange cited a pending
announcement ``in relation to a potential partnership.'
Pacific Century Cyberworks last month posted a net profit of $44.5 million in the year ended Dec.
31, boosted mostly by its Internet-related investments.
Pacific Century CyberWorks, run by billionaire Li Ka-shing's son Richard Li, announced in
February it would buy Hong Kong's leading telecom company, Cable & Wireless HKT, in a deal
that was initially valued at $38.1 billion in stock or $35.9 billion in a combination of cash and stock.