[shri]

So, other than bankers and lawyers, is anyone going to make money out of this transaction? Or ... is there a cunning plan behind this?

[francocw]

Mr. Li is the only winner. He can finally hands off from the troubles of PCCW. haha. Other shareholders are all losers.

[shri]

Franco, but.. is he really the winner considering he is loaning the money for the purchase? (Depends on the loan agreement...)

[kombuchakid]

Dickly[formerly Minili]now has everyone mad at him
His dad had to lend most of the money to the guy who was 'chosen' to 'buy' PCCW shares at a discount to price being offered by foreigners.
Dickly still holds 3% of PCCW so he can 'feel' the shareholders pain.

Dad will recoup his outlay [at 6% p.a.] in just under 17 years at which time he will have forgotten that he ever lent the money to bail out his idiot son.

Having suffered a massive loss of face Dad will relinguish idea of bankrolling a Dickly assault at the Chief Executive post in 2012, and banish the prat to Edmunton.

[freeier]

in the stock market, u can only follow what the big boys do and try to make some money out of it.

at the end of the day, u must know the idea of publicly listed companies. the CEO/chairman whoever else are using money u have placed in their hands to do things. they have an obligation to help u grow your money, but in this case it obviously is not happening.

there are always companies u avoid and companies u invest in.. sadly, this case it was a big ripoff and, ya, prob only the li got it cheap. he generated some paper company using public money to purchase the asset, then now the dad get to pick the bones cheaply. hmmm

[francocw]

My judgement base on the facts that i know. Please correct me if i am wrong. Let me explain why i said Mr. Li escape from a big trouble.

In 2000, when PCCW buy HK telecom, PCCW do borrow some billions of dollars from bank in order to buy HK telecom. (The money was borrowed under PCCW but not Mr. Li himself). After PCCW buy HK telecom, they merge and become the PCCW now. Of course, the debt of the 2 company also merge as well. The Long-term liability of PCCW listed in the 2005 annual report is actually 20 billions HK dollars. After PCCW merge with HK telecom, the new PCCW is actually a company with big debts. Mr. Li need to think of way to get rid of the debt.

So in this deal, most of the PCCW share holds by Mr. Li was sold. So he can simply get away from the whole thing by selling most of his shares and leave the debt to others in PCCW to handle. That's why i say he's the winner.

[freeier]

francocw,

let's put it this way, little li was never in trouble.
he made the company from nothing, stirr up the market sentiment until everyone thought pccw is a multibillion dollar company and paid for the shares. he then took a loan, plus printed many of his pccw shares to swap with BT for C&W.

pccw wld have just dwelled on. making sufficient cashflow to pay for the interest of the loan but prob unable to reduce it significantly.

little li got tired of it. so he bailed out. his investment in this thing is minimal and he prob have made most of it back thru one form or another (pay ? option ? etc).

some papers got twirled around and everyone suffered in the end.
the investment bankers that thought of the original deal was innovative but too bad the public got caught into it unawared...

[abcdefghi]

Moral of the story: don't invest in companies loyal to Beijing.

[shri]

Not really ... Cheung Kong is doing pretty well for itself.

[kombuchakid]

Originally Posted by kombuchakid

Dickly[formerly Minili]now has everyone mad at him

His dad had to lend most of the money to the guy who was 'chosen' to 'buy' PCCW shares at a discount to price being offered by foreigners.
Dickly still holds 3% of PCCW so he can 'feel' the shareholders pain.

Dad will recoup his outlay [at 6% p.a.] in just under 17 years at which time he will have forgotten that he ever lent the money to bail out his idiot son.

Having suffered a massive loss of face Dad will relinguish idea of bankrolling a Dickly assault at the Chief Executive post in 2012, and banish the prat to Edmunton.

This just out

Papaly DID lend 500 million, way before ol Francis even dreamt of buying PCCW

http://www.forbes.com/business/feeds...fx3033934.html