C&W, PCCW See Deal Near Despite New Legal Hurdles

Cable &

Wireless HKT Ltd (HKT) Monday said that an agreement between its
majority shareholder, Cable and Wireless plc (C&W), and Pacific Century CyberWorks Ltd (PCCW)
may be reached within the next 48 hours.

HKT suspended trading of its shares pending an appropriate announcement
by PCCW. PCCW also suspensed trading in its shares pending an announcement
with Cable & Wireless HKT Ltd. Trading in the company’s stock has been frozen
since last Friday.

The bidding for HKT took a dramatic turn on Sunday when the Sunday Times in
Singapore reported that Singapore Telecommunications (SingTel) is planning legal
action against HSBC Holdings.

SingTel claims HSBC broke conflict-of-interest rules because HSBC had been
advising HKT’s directors. In that role, it would have had access to
confidential data SingTel is using in its bid for HKT.

But HSBC resigned as advisers on Sunday and is now raising money on behalf
of Pacific Century
CyberWorks, which is also preparing a bid for HKT.

HSBC and Bank of China International are reported to have provided
CyberWorks with a bridging loan of up to HK$77 billion (US$10 billion).

The Sunday Times said SingTel’s solicitors would take action against HSBC in
the Hong Kong courts.

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