(Associated Press via NewsEdge) After sparking a month-long frenzy of media speculation, Hong Kong's largest fixed-line phone operator PCCW has rejected separate bids by two foreign investors for its telecommunications and media assets.
PCCW has called off talks with Australia's Macquarie Bank and US private equity company Newbridge Capital, a unit of Texas Pacific Group, due to objections from its major shareholder China Network Communications, PCCW said in a statement.
China Netcom, a state-owned company that holds 20% of PCCW, has 'repeatedly indicated "&brkbar; its opposition to such an asset sale and, despite persistent endeavors to develop an acceptable structure, all attempts to do so have failed,' the statement said.
China Netcom has suggested it did not want to see telecom infrastructure on Chinese soil falling into foreign hands.
PCCW, controlled by Richard Li, son of Hong Kong tycoon Li Ka-shing, said last month that Macquarie and Newbridge were making rival bids reportedly worth about $7 billion each to buy its core telecommunications and media assets.
But Li announced two weeks ago that he would sell 23% of his 26% stake in PCCW to financier Francis Leung for HK$9.16 billion ($1.2 billion).