Neues von PCCW (924 882) aus Hongkong v. 28.2.00:

Top Financial News
                   Mon, 28 Feb 2000, 2:02am HKT

                   SingTel May Sue HSBC to Block its Participation in
                   $10 Bln CyberWorks Loan
                   By Michele Batchelor and Linus Chua

                   SingTel May Sue HSBC Over CyberWorks Bid for HKT (Update3)

                   (Changes attribution in first paragraph; adds that CyberWorks
                   plans to resume trading on Monday.)

                   Singapore, Feb. 27 (Bloomberg) -- Singapore
                   Telecommunications Ltd. may sue HSBC Holdings Plc to prevent it
                   from helping Pacific Century CyberWorks Ltd. raise funds for a
                   rival bid for Cable & Wireless HKT Ltd., a person familiar with
                   the situation said.

                   SingTel is contemplating a lawsuit because HSBC had access to
                   private information about the bid when it was advising the
                   independent board of directors of Hong Kong's dominant telephone
                   company, the person said. HSBC, which advised HKT to reject
                   SingTel's bid, is now helping CyberWorks raise as much as $10
                   billion for its own rival offer.

                   The U.K.'s Daily Telegraph reported earlier that SingTel's
                   lawyers may file suit in Hong Kong as early as Monday. The Sunday
                   Times of Singapore also reported today that SingTel is considering
                   a suit.
                   ``It is a conflict of interest for HSBC to act for both
                   sides,'' said Yang Sy Jian, director of research at Kay Hian Pte.,
                   a Singapore brokerage. At the same time, ``if HKT is interested in
                   selling and CyberWorks has insufficient funds, then there's a good
                   chance that SingTel can come in, as it's in a better financial
                   position,'' he said.

                   Officials at SingTel, HKT and CyberWorks declined to comment
                   about the reports. Goldman, Sachs & Co., which is advising
                   SingTel, also declined to comment.

                   A CyberWorks spokesman said the company intends to publish a
                   statement in Hong Kong newspapers similar to one on Saturday in
                   which it said it hasn't yet made a firm offer for HKT.

                   HSBC said in a statement late Sunday that it couldn't comment
                   on the newspaper reports because it hadn't yet heard from SingTel
                   or from SingTel's legal advisers. ``However, what we would like to
                   make absolutely clear is that at all times we have acted properly
                   in all our dealings with Cable & Wireless HKT,'' an HSBC spokesman
                   said.

                   Europe's largest bank by market value reports 1999 earnings
                   tomorrow, when it is expected to say net income rose 23 percent to
                   $5.3 billion, according to seven analysts surveyed by Bloomberg
                   News.

                   Legend Pact

                   The three-way bidding war for HKT began one month ago, when
                   SingTel first said it was in talks for a merger with HKT, 54
                   percent owned by Cable & Wireless Plc of the U.K. Two weeks later,
                   CyberWorks, Asia's No. 3 Internet investment company, said it was
                   also seeking to make a bid for HKT.

                   On Friday, CyberWorks asked that its shares be suspended from
                   trading pending a statement on what it called a ``substantial
                   price-sensitive transaction.'' The halt fueled speculation it was
                   poised to announce the terms of its HKT bid, though Legend
                   Holdings Ltd. of China later said it planned a Monday news
                   conference about a separate pact with CyberWorks.

                   In a statement on Saturday, CyberWorks said it was still
                   negotiating with HKT, and that the two sides had not yet agreed on
                   terms for a formal offer. CyberWorks said the suspension aimed to
                   ``avoid a potential false market.''

                   CyberWorks will ask that its shares resume trading Monday, a
                   company spokesman said.

                   There's no guarantee that SingTel will file a lawsuit, and
                   even if it does, whether that would scupper a CyberWorks bid.

                   Mannesmann AG, the German mobile phone company, filed an
                   injunction against Goldman Sachs Group Inc. in November seeking to
                   block the bank from advising Vodafone AirTouch Plc. on a possible
                   bid for the German company. Mannesmann claimed Goldman's previous
                   work with itself was a conflict of interest.

                   The court eventually rejected Mannesman's claim and ruled
                   that Goldman was free to advise Vodafone.

                   Cash-Hungry?

                   Even so, HSBC's involvement as an adviser and as a
                   participant in the loan makes the bank ``look unsuitable,'' said
                   Chong Yoon Chou, a director at Aberdeen Asset Management Asia
                   Ltd., which manages about $1.8 billion. ``You can't have one bank
                   working for both.''

                   CyberWorks, controlled by Richard Li, son of Hong Kong tycoon
                   Li Ka-shing, is likely to have the support of plenty of other
                   banks should HSBC withdraw from the loan. Basis Point, an industry
                   newsletter, reported last week that other banks involved in the
                   loan include Bank of China and Banque Nationale de Paris.

                   CyberWorks said it now has $3 billion in cash, including the
                   $1 billion it raised from a stock sale earlier this month. To gain
                   control of HKT, CyberWorks will need at least $7 billion more to
                   buy more than half of the 54 percent stake held by Britain's Cable
                   & Wireless Plc based on current market prices.

                   Cyberworks hasn't yet explained its proposed bid in detail,
                   beyond saying it would consist of cash and stock. The Hong Kong
                   Economic Times reported yesterday that SingTel may increase the
                   cash portion of its bid to beat out a CyberWorks bid.