Dial it up

10 November 2008 By John Foley Follow @johnsfoley

Chairman Richard Li is offering $3.7bn to take the Hong Kong telecoms group private. That s less than the value implied a month ago by private equity offers for part of the business. The board declined those, and shareholders should only take Li s call if he offers more.

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Richard Li, the Hong Kong entrepreneur, and China Netcom, the Chinese mobile telecom operator, announced a full takeover offer for PCCW, the Hong Konglisted telecoms and property group in which they own a combined 48% stake. The offer is HK$4.20 a share in cash, valuing the whole group at HK$28bn ($3.7bn).

PCCW tried over the summer to sell a 45% stake in HKT, a new vehicle containing most of its telecoms assets. Various private equity firms examined the unit, but the offers received were not high enough to persuade the board to put a deal to shareholders.

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