PCCW's Li Says He Hopes To Have A Deal This Month

HONG KONG (Dow Jones) -- PCCW CEO Richard Li said Monday that he hopes that controversial negotiations to sell the Hong Kong company's telecom and media assets will reach a conclusion by the end of July, according to media reports.

His comments came after PCCW's board met Monday morning to discuss the pending sale.

Li said no decision has been reached, and that PCCW and its bidders "will continue the talks in the next few days."

PCCW shares were unchanged Monday morning.

The announcement comes a day after Hong Kong's Wen Wei Po daily reported that Chinese state-controlled investment firm Citic Group was planning to make a joint offer for PCCW's telecom assets with mainland fixed-line giant China Netcom.

The Wen Wei Po report quoted a spokesperson for Citic's Hong Kong investment subsidiary GGI as saying the company was entering the fray out of "social responsibility" to prevent foreigners from taking control of the city's phone service.

China Netcom has, which owns a 20% stake in PCCW and has voiced opposition to the sale of its telecom assets to non-Hong Kong owners, has denied the report.

On June 21, PCCW confirmed it had received non-binding expressions of interest from Australia's Macquarie Bank and from Newbridge Capital, the Asian investment arm of U.S.-based Texas Pacific Group.

None of the companies involved have indicated the size of the offers, but they are widely reported to be in the $7 billion range.

PCCW is the dominant fixed-line phone operator in Hong Kong. Its assets under negotiation also include mobile service provider Sunday Communication and the popular NOW broadband pay-TV service.

The company also has lucrative property holdings, which are not up for sale.

(END) Dow Jones Newswires "

Posted to the site on 3rd July 2006