Cisco cuts CCS stake for second time in two months

China Communications Services (CCS) saw its share price decline by 5% on Thursday as Cisco Systems jettisoned US$51 million of the company’s stock, Bloomberg reported. It is the second time in about two months that Cisco has reduced its holding. There are concerns that Hong Kong-listed CCS, China’s biggest builder of phone networks, will suffer as the government orders telecom operators to share networks. Cisco sold 90 million CCS shares at HK$4.36 (US$0.56) each, the lower end of its indicative price range for the sale, according to people with knowledge of the transaction. On October 9, the company sold 72 million shares at HK$5.52, leaving it with a total of 178.6 million shares, or a 9% stake in CCS. A CCS spokesman said the company was continuing to develop its partnership with Cisco.