Hong Kong-based phone company PCCW announced it would not make any further takeover approaches regarding Britain's Cable & Wireless. PCCW said in a statement released via the stock exchange in Hong Kong it will not make any further approach to C&W and it will not make any offer. This weekend Japanese newspapers reported PCCW was also in takeover talks with Japan Telecom Holdings Co. All this resulted in a sharp fall of PCCW bonds on the Hong Kong stock market. PCCW has a net debt of 4.2 billion US dollars and Moody's Investors Service put the firm's credit rating under review for a possible downgrading. Investors don't seem to appreciate that PCCW is on the buying path again after it bought C&W Hong Kong Telecom subsidiary in 1999. It had promised on that occasion to saddle its debts and to focus on paying the debt off rather than making fresh acquisitions. But the bidding for Cable & Wireless and the news from Japan that PCCW was also bidding for Japan Telecom resulted in a suspension of PCCW shares on the Hong Kong stock exchange pending further announcements. Hong Kong's stock market regulator demanded an explanation. PCCW says its shares would resume trading on Tuesday.
