C&W HKT - from boring monopoly to high-risk start-up?

C&W HKT shareholders are being asked to say goodbye to dividends "for the foreseeable future" and prepare for an uncertain ride in PCCW-HKT.

The board of Cable Wireless HKT CW HKT is warning its shareholders to prepare for change if, as it recommends, they choose to accept an offer from Pacific Century CyberWorks PCCW.

The financial risk profile of HKT will change from that of a company with substantial cash reserves, little debt and a history of regular dividend payments, to being part of a group with significant debt and which is unlikely to be able to pay dividends in the foreseeable future, says the board.

The general undertone of the risk factors section in the circular being sent to shareholders is prepare for cash-calls, take a long-term view and by the way,...

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