China Netcom reported close to PCCW stake

Beijing-based China Netcom is considering spending US$4.13 billion for an undisclosed stake in Hong Kong telecom service provider PCCW, according to Hong Kong's Sing Tao Investment Weekly which cited sources close to the deal. The two companies have been in talks since May. According to the report, China Netcom would pay HK$6 a share, a premium of around 10% on the current share price. China Netcom plans a US$1.5 billion initial public offering in Hong Kong in the fourth quarter.