Abstracts » Business, international

Li v Lee

Article Abstract:

Pacific Century CyberWorks (PCCW) is seeking to acquire Cable and Wireless HKT. PCCW is headed by Richard Li, who aims to use satellite and cable to link Asian household to the internet. Li may need a consortium for the bid. HKT is cash generative and has 3 million customers on fixed lines as well as an internet service with 700,000 subscribers. PCCW may be paying a large amount to gain access to the Hong Kong market, when it aims to become the largest supplier in Asia of broadband internet service.

Pacific Century CyberWorks, Cable and Wireless (Hong Kong) Ltd.

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The telecoms end game

Article Abstract:

MCI WorldCom is seeking to acquire Sprint which ranks third among long distance companies, with a stake of 11% in the market, as well as a mobile phone business that is growing. The company has invested in an Integrated On-Demand Network, and there is a debate as to the wisdom of such a large investment. Sprint's alliance with Deutsche Telekom and France Telecom, Global One, looks set to be dissolved. Sprint offer 4 million subscribers which would bring economies of scale for MCI WorldCom.

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A high-wired act

Article Abstract:

MCI WorldCom has agreed to pay $115 billion for Sprint, and it is unclear whether customers and stockholders will benefit from the deal. Large firms have sought economies of scale through mergers, and the stock market has tended not to be critical of big deals. There has been a high level of activity in telecoms following the 1996 Telecommunications Act. Collusion is one possible risk, and there is a drive toward integrated operators. The deal is unlikely to be prevented due to political factors and the strength of concerns linked to Wall Street.

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