Pacific Century CyberWorks: Taking on a telecom
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Pacific Century CyberWorks: Taking on a telecom

Deals of the year: Tech and telecoms illustrate the ups and downs of 2000
Author: Anja Helk

Acquirer: Pacific Century CyberWorks
Type of deal: LBO of Hong Kong Telekom
Amount: $37 billion (later adjusted to $28 billion)
Date of announcement: February 29 2000
Advisers for PCCW: Bank of China International, CSFB, MSDW, UBS Warburg
Advisers for Cable & Wireless: Merrill Lynch, Greenhill & Co
Adviser to HKT: Jardine Fleming (now Chase)
Independent financial adviser to HKT board committee: ING Barings








In February 2000 Pacific Century CyberWorks (PCCW) left the biggest imprint on corporate history ever made by an internet company. Even the AOL-Warner deal fades in comparison to the takeover of Hong Kong’s crown jewel and 127-year cash cow, Hong Kong Telekom (HKT), by a nine-month old internet start-up. This was the largest-ever M&A transaction in Asia, including Japan.

It all started in January 2000 when news broke that talks between HKT’s majority owner – UK company Cable & Wireless – and Singaporean Telecom company Singtel were stagnating. Their disagreement, initially over price expectations, widened into a political discussion and it became a “well-established rumour” that the government of the People’s Republic would not sanction a takeover by Singtel.





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