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 Technology Stocks : Pacific Century CyberWorks (PCW, PCWKF)

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To: ms.smartest.person who wrote (3181)10/16/2000 11:00:27 PM
From: ms.smartest.personRead Replies (2) of 4541
 
CyberWorks falls in wild trading

singapore.cnet.com 

By The Associated Press, CNET News.com
Tuesday, October 17 2000

HONG KONG--Despite a cash infusion that will help Pacific Century CyberWorks Ltd slash its debt by billions, investors pushed its shares down by 5.9 percent Monday in wild dealings that first saw the Internet group rally by 12.4 percent.
CyberWorks finished with a loss of HK$0.45 (US$0.058) at HK$7.20 (US$0.923) per share--about one-third the company's share price when it said in February it planned to buy Hong Kong's top phone company, Cable & Wireless HKT.

CyberWorks shares had last traded Thursday. They were suspended Friday on the Hong Kong Stock Exchange as CyberWorks announced details of a major joint venture with Telstra Corp, the Australian telephone giant.

Analysts expected CyberWorks shares would rise in response to the US$3.56 billion venture with Telstra--which will give CyberWorks cash to cut the debt it took on to buy HKT to US$5.5 billion from US$9 billion.

But the experts had not predicted the price rise would be so brief.

CyberWorks began dropping months ago, when it said it intended to buy HKT. It has kept on falling after making the acquisition. Analysts have been worried about the company's debts and what many call the lack of a proven business plan.

The plunge in the CyberWorks price cut the value of the cash and stock deal to buy HKT, in Asia's biggest merger to about US$28.5 billion when it closed in August, about US$10 billion lower than the company estimated when it announced its bid.

Telstra, which recently renegotiated its joint venture with CyberWorks, will get among other things a 60 percent stake in an Asian mobile telephone operation.
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