HONG KONG-The board of directors of Cable & Wireless HKT Ltd. unanimously resolved to recommend to C&W HKT’s shareholders that they accept the offer from Pacific Century CyberWorks Ltd. to acquire the entire issued share capital of the Hong Kong wireless carrier.
The takeover was first announced in February, but the recent sharp decline in Internet stock prices caused speculation that a rival offer could still be considered. The share price of PCCW, an Internet startup based in Hong Kong, is down nearly 40 percent from when the deal was first announced.
The merger will be effective Aug. 10, if shareholders of C&W HKT, Britain’s Cable & Wireless plc and PCCW approve the plan at their shareholder meetings in June and July. If the deal is approved, C&W HKT will become a wholly owned indirect subsidiary of PCCW.
