APAC Update: Bids, Bungs & Capex Concerns

China Netcom and various companies controlled by Li already own 47.58 percent of PCCW's stock, so the offer is for the remaining 52.42 percent. At HK$4.20 per share, the offer will cost the consortium as much as HK$15.49 billion ($2 billion) if all current stock options are exercised before any agreed acquisition date. The news sent PCCW's share price up by HK$0.78, nearly 27 percent, to HK$3.68 Wednesday in the stock's first day of trading after it was suspended on October 14. That suspension followed the news that PCCW had discontinued a planned asset sale. (See PCCW Ditches HKT Sale.) The offer from Li and Netcom's consortium has a long way to go before it might be accepted by shareholders, however, the fact that PCCW's share price is now trading some way below the offer price suggests a lack of confidence in the deal by... [read full story]