PCCW LIMITED
電訊盈科有限公司
Decapitate the headcount
We make the case for abolition of the archaic and anarchic headcount rule in Schemes of Arrangement, which was brought into focus when we reported evidence of a vote-rigging scheme in the proposed PCCW privatisation in 2009. For once, the tycoons agree with us, but the Government seems afraid to take the lead. (12-Mar-2012)
HKICPA disciplines Paul Chan Cheuk Chi.
Reasons
HKICPA, 24-Feb-2012
The unnamed finance director (actually, manager) is Steve Lam Sing Keung and his unnamed employer was PCCW Ltd (0008). The unnamed corporate practice of which Paul Chan Cheuk Chi was a director is Baker Tilly Hong Kong Ltd. The bogus debit note was to cover the cost of "employing" Lam's girlfriend so that she could get a work visa in HK.
TV licensing in HK: what a mess
HK Government, 11-Jan-2012
Unlike cellphone networks, TV stations don't have to bid for their radio spectrum, and can squat on it with only cursory reviews. The Chief Executive of HK decides who should be allowed to broadcast. Let the market decide instead.
Chung Nam Securities & responsible officers reprimanded and fined re PCCW trades
SFC, 26-Aug-2010
This relates to the vote-rigging of the headcount in PCCW's privatisation exposed by Webb-site in 2009. The judge in the Court of First Instance said "I agree with the submission of the SFC that there are sufficiently cogent reasons to infer that the 132... persons in whose names the single board lots were acquired through Chung Nam...did so as a result of a plan devised by Eugene Chuang...to boost the head-count...The purchase of 125 single board lots would appear to have been financed by Eugene Chuang".
HKICPA strikes off Steve Lam Sing Keung.
Reasons
HKICPA, 7-Jun-2010
Once again the HKICPA fails to name the listed company for which the accountant worked. It was PCCW Ltd. We note that Mr Lam was not a director of the listed company but was described by the ICAC as "director of group finance".
PCPD details Cyberport dispute with government
Company announcement, 23-May-2010
Comment: readers will recall we criticised this interventionist property project, announced by Donald Tsang in his 1999 budget and awarded to Richard Li without tender. Now it turns out that they left a loophole in the definition of "deficit" in the agreements - PCPD says it excludes depreciation, while the Government says it doesn't. The difference: about HK$1.2bn of taxpayer's money.
Imagi bubble
We issue a bubble warning on Imagi (0585), up 616% in 4 days on turnover of 185% of the company. The confusing timetable, with a 10:1 consolidation yet to come, has likely contributed to more chaos than we have seen since Asian Citrus. The market price implies a valuation of 33.2 times book value, or a premium of HK$17.3bn (US$2.23bn). We think a discount would be more appropriate, for the characters involved. (14-Apr-2010)
PCCW - Grounds of Appeal
In our view the judgment in the Court of First Instance on PCCW's scheme of arrangement and the alleged vote-rigging provides ample grounds for appeal. We look at the ruling in detail and where the SFC may be taking this case on Thursday at the Court of Appeal. (13-Apr-2009)
PCCW clarification announcement
Company announcement, 3-Feb-2009
Comment: PCCW's inquiries into the alleged vote-rigging "include a review of the share register" which "will take time to complete". Surely this review should be conducted by the SFC which, unlike PCCW, does not have a conflict of interest in the matter.
Vote-rigging plan for PCCW meeting
Webb-site.com has discovered compelling evidence of an attempt to rig the shareholder vote in the proposed privatisation of PCCW Ltd, involving hundreds of new holders of one board lot each, many of whose names match insurance agents of Fortis Asia, a former fellow subsidiary of PCCW. (1-Feb-2009)
The paid advert opposing the blackout rule
Click on "Orgs" or "People" below to get a list of signatories, scroll down, then click on their names to go to the signatory you are interested in. (29-Dec-2008)
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People
- Chan, Augustine Kwok Chuen (fka Chan Kwok Hung)
- Chan, Fut Yan
- Chau, Rosanna Mei Wah
- Cheung, Chi Kit (1966)
- Cheung, Edwin Hon Kit
- Chow, Louie Ki Shui
- Chuck, Winston Calptor
- Fung, Patrick Yuk Bun
- Fung, Tsun Pong
- Lai, David Tsan Tung
- Lam, Alvin Leslie Kwing Wai
- Lau, Stephen Sing Hung
- Lee, Hon Chiu (1962)
- Lee, Kit Wah
- Lee, William Tak Lun
- Li, David Kwok Po
- Lo, William Wing Yan
- Ma, Karl Chi Kong
- Tsang, David Kam Ching
- Tung, Chee Chen
- Yan, Loucia Ha Hung
PCCW bid - comment
We look at the PCRD/CNC proposal to privatise PCCW. The financial evidence suggests they have left room for an increase in the bid. (5-Nov-2008)
Official: Richard Li doesn't control PCCW
The Government-appointed Broadcasting Authority says that Richard Li doesn't control PCCW - who knew? This exposes a huge loophole in the law on cross-media ownership, which can be avoided simply by passing your shareholdings into a trust. We call on the Government to either scrap the law, which is outdated in the internet age, or close the loophole by amending it. (2-Jun-2008)
Government 'sanitizes' LegCo Cyber Report
In a test of the flimsy Code on Access to Information, Webb-site.com has been quietly battling to obtain the Cyberport accounts. We can now reveal that the Government has "sanitized" the financial information it recently released to LegCo. We call on Legislators to establish a Select Committee to investigate this controversial, untendered project and force disclosure of all the documents. If Government is serious about collusion with the business sector, or preventing it, then they should co-operate. (7-Feb-2005)
Cyberport Secrets
Government-owned Hong Kong Cyberport Development Holdings Ltd and its subsidiaries were incorporated in December 1999, but refuse to publish any of their accounts. What is the Government trying to hide? We also take a look at the controversial West Kowloon project, the winner of which will be determined by Government in a highly subjective process. (24-Oct-2004)
Vampire bites PCCW
At PCCW's AGM on Thursday, investors voted against the general issue mandate by an estimated margin of 77.4% to 22.6%, or more than 3 to 1, the 6th index win for Project Vampire. A low turn-out may indicate how little interest this company now commands amongst institutional investors. (27-May-2003)
PCCW voting advice
The 15th AGM in Project Poll is on 22-May-03. We urge shareowners to protect their investment by voting against the general mandate. (9-May-2003)
Don't Ask, Don't Tel
PCCW introduces new "Don't Ask, Don't Tel" branding to investor relations product. (10-Feb-2003)
Hikari's Strange Exit
Our eyebrows were raised when all the representatives of PCCW resigned from the board of Hikari Tsushin International, of which PCCW owned 20%. All became clear a few days later as the Japanese parent sold a 51% controlling stake to a previously unknown investor whose intentions remain vague. The sale price was announced as $0.045, a 70% discount to NAV, triggering a general offer at that lowly price, but days later PCCW sold a 10% stake at $0.155 - what's going on? (30-Dec-2001)
The Undergraduate
So the truth is out, and Richard Li has admitted that he did not graduate from Stanford, contrary to claims previously made in PCCW biographies and the group web site. In admitting this, the company took pains to emphasise that the claim was not made "in public disclosures filed by the Company in accordance with applicable legal requirements". That's true, as far as it goes... but Webb-site.com can reveal that the degree claim has been made in both the US and Singapore in legal filings of documents for which Richard Li was responsible - read on. (23-Mar-2001)
Telstra's New Deal
After six months of negotiation, the final terms of the Telstra-PCCW deal are
out. Webb-site.com takes you behind the numbers and tells you what the
press release didn't say. (13-Oct-2000)
What Price Mobile?
We examine the price on the mobile phones in the Telstra-PCCW deal, and find a huge premium to listed competitors Smartone and Sunday. We also look at how the HK Government's pending decision on 3G will affect all players. Finally Webb-site.com walks the Telstra board through some of the many alternatives to an over-priced deal with PCCW. (2-Oct-2000)
End Game for PCCW
We examine the collapse in the price of PCCW and the self-inflicted situation of Cable & Wireless. We ask whether the Telstra convertible loan note could be repriced again, and ask what has happened to the planned funding from Hicks Muse Tate and Furst. Finally, we tell you why we've spent so much time on this company in the first place. (21-Sep-2000)
HKT Completion
The PCCW takeover of HKT became effective today. The resultant shareholdings add up to one giant overhang. We also look at how many people failed to elect for the more valuable of the two offers, the shrinking investment portfolio, and the silence surrounding key deals by PCCW needed to refinance its debt as it transits from concept stock to telecom utility. (17-Aug-2000)
Decision Time
As the shareholder meetings of C&W and HKT draw nearer, we take a look at the details of the takeover document. If you are an HKT shareholder, watch out for a sting in the offer alternatives. If you are a C&W shareholder, consider the real value of the huge PCCW stake your company will be getting. We also review the debt burden PCCW will be under and find a few surprises in the offer document. (9-Jun-2000)
3G in HK
A fascinating debate is going on in HK about how the Government should dispose of the radio spectrum needed to launch third generation (3G) mobile services. Two arms of the Li family, PCCW and Hutchison, appear on opposite sides of the spectrum debate. Auctioning the licenses could wipe out the budget deficit for several years, without introducing sales taxes or selling off the MTRC - Webb-site.com examines the issues. (9-Jun-2000)
Schemes & Votes
The proposed takeover of C&W HKT by PCCW is being done by Scheme of Arrangement rather than General Offer. While this tactic accelerates the path to 100% ownership (and access to HKT's cash) the legal framework leaves the deal open to a decision by minority shareholders in the final vote. If you are an HKT shareholder, find out how to make your vote count! (29-May-2000)
Starless Now?
The PCCW-HKT takeover document is out, and we've read it. We'll give you the inside track on that in the next few days. But first, spare a thought for News Corp's Star TV, which in November announced a joint venture with HKT for digital TV. In another Webb-site.com exclusive, we have seen the full joint venture agreement. The JV seems almost certain to collapse, and we'll tell you why... (28-May-2000)
Behind the Telstra Deal
PCCW has begun to dismember C&W HKT even before it has bought it. Lining up a deal with Telstra yesterday, it will sell 40% of the mobile phone operations and borrow US$1.5bn in a subordinated convertible loan from Telstra. We take a look at the terms of the transaction, and update our valuation of PCCW with and without HKT, to take account of the slide in the market prices of its internet portfolio. (13-Apr-2000)
End of The Equity Spiral
We look in detail at last week's announcement of the proposed acquisition by Pacific Century CyberWorks of Cable & Wireless HKT. The issue of inflated shares in the deal will raise our valuation per share, but PCCW is now so big that the equity spiral is over, and there's a gap of US$44bn of hope or hype in the price. Read our detailed evaluation and discover the key "crossover" point between the two offers. (5-Mar-2000)
PCCW Portfolio
This page provides details of the known investments and acquisitions of Pacific Century CyberWorks (PCCW) (18-Feb-2000)
Screening Our Calls
In this in-depth article, with an accompanying analysis of Pacific Century CyberWorks' hectic sequence of equity fundings and portfolio of acquisitions, we give our latest valuation. To the London board of Cable & Wireless we say: if PCCW is offering you paper, don't pick up the phone. (15-Feb-2000)
PCCW Funding
This page provides details of the various equity issues for cash by Pacific Century CyberWorks. It does not include shares issued in exchange for assets or shares of other companies. (15-Feb-2000)
Tricom's Day of Reckoning
The day of reckoning approaches for Tricom, shortly to be renamed Pacific Century CyberWorks. Yesterday Pacific Century announced an injection of its Intel joint venture into Tricom, on terms we examine in this article. In a previous article we called the stock over-valued at $1.83. It closed yesterday at $1.00, on the eve of a 5 to 1 consolidation. We review the share transactions since the deal was announced, and give you our take on what happens next. (3-Aug-1999)
Cyber-Sale?
Two recent votes in Legco approved funding for the Cyberport's basic infrastructure, after a meeting between the government and 10 leading developers who had raised objections to the deal. Webb-site.com has learned that the Government has appointed Morgan Stanley to advise it in relation to the project. Rumours are circulating that a Government announcement is expected in the next few days. We make a prediction of what they will say... (9-Jun-1999)
Kroll Investigates our Cyberport Coverage
In a development with startling implications for press freedom in Hong Kong, Webb-site.com discovers that leading private-eye Kroll has been investigating our critical coverage of the Cyberport, for an unknown client, as part of a wider on-going project. (27-May-1999)
Pacific Century CyberWok
Will punters never learn? Tricom's deal with Pacific Century Group may be exciting, but it might be safer to rename the vehicle Pacific Century CyberWok, for the effect it will have on people who bought the shares yesterday! (5-May-1999)
Pacific Roundabout
Richard Li's Pacific Century Group is reversing a property called Pacific Century Place, Beijing, into Hong Kong-listed Tricom, currently a subsidiary of China Strategic. Webb-site.com reveals a previous link between China Strategic and the property, once known as Nation Wealth Plaza. (5-May-1999)
Cyber Villas by the Sea
A critical analysis of the Government's proposed joint venture property development with Pacific Century Group. The author finds the project space is 75% residential. (22-Mar-1999)
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