Cable & Wireless seeks to rid itself of PCCW

For most commentators, the answer has been a resounding no. In the eyes of many, a 14% slide in PCCW's ADR price during New York's morning on Monday, taken alongside a grey market price for the exchangeable that has already fallen below par prior to completion, is evidence enough of how the stock and bond will fare when trading re-opens in Asia today (Tuesday).

All are agreed, however, that Cable & Wireless had little other option in disposing of its 14.7% stake in the telecoms and internet company. "On the sell side, getting rid of PCCW at this time and at these levels says everything about what Cable & Wireless really thinks of it," says one telecoms analyst. "On the buy side, institutions don't want to go anywhere near the stock either, having got badly burnt the last time C&W sold down part of its stake at HK$9 [$1.15] per share. Any form of placement would have just sent the stock crashing further downwards and made C&W's remaining equity even more worthless than it already is."