China Netcom Fails To Influence Final PCCW Takeover Decision

The attempted sale of a 22.7% stake in Hong Kong's leading fixed line operator PCCW to local business magnate Francis Leung has failed, and with it Spanish giant Telefonica's hopes to enter the Hong Kong market. This has surprised us as we had anticipated China Netcom and Telefonica taking the reins of PCCW with a joint 28% stake in the company. That this is not happening is of great concern to China Netcom. In July 2006, China Netcom insisted that in its view as a 20% shareholder, strategic telecoms assets should not be sold to foreign investors, such as Australia'a

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