PCCW saves C&W's bacon

One of the main reasons Cable & Wireless sold Hong Kong Telecom to PCCW could now be emerging.

The placement of Pacific Century CyberWorks PCCW shares by Cable Wireless CWcompleted overnight on Wednesday has caused the stock to plunge in value by 15.92% in little over two days. It did not help that the sale price of the shares at HK$9.88 $1.27 was an 8% discount to the previous day's closing price and 37% lower than the HK$15.80 level at which CW acquired the shares.

The sale has called into question the role that CW has played in the great PCCW saga. Putting it more bluntly, an investor friend of mine recently asked, What on earth must Cable Wireless have been...

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