New PCCW bid undermines foreign efforts

Former Citigroup banker Francis Leung Pak-to will pay US$1.18 billion to buy Pacific Century Regional Developments� (PCRD) 23% stake in PCCW, potentially blocking efforts by two foreign groups to buy the company's telecom and media assets, the South China Morning Post reported. PCRD is a Singapore-listed outfit 75% controlled by PCCW chairman Richard Li Tzar-kai. He will step down on November 30 when the first of three installments from Leung is due. Macquarie and US-owned buyout firm TPG-Newbridge had both offered roughly US$7.7 billion to buy the bulk of PCCW's assets, but the bids were opposed by state-owned China Netcom, which has a 20% stake in PCCW, and Beijing, which opposes foreign ownership of telecom and media assets. However, both offers remain before the board.