Intel boosts stake in PCCW

HONG KONG: U.S. semiconductor giant Intel Corp has boosted its stake in Hong Kong's dominant fixed-line phone company, according to a regulatory filing.

Intel, the world's biggest semiconductor firm, increased its holding in the company controlled by tycoon Richard Li to 11.4 percent from 6.19 percent, according to a filing dated March 3.

A PCCW spokesman had no immediate comment and an Intel official could not be reached for comment.

Intel and PCCW have a long relationship. Among their ties, Intel held a stake in PCCW's Network of the World venture -- a multimedia TV operation -- that was convertible to just over one billion PCCW shares. Since then, PCCW has undertaken a five-into-one share consolidation.

Intel's disposal of shares in PCCW has been subject to lock-up provisions.

Shares in PCCW, the worst-performing Hang Seng Index constituent in 2003, rose 1.8 percent on Tuesday to close at HK$5.65. Its shares have risen nearly 12 percent this year.

Intel's stake in PCCW is worth about HK$3.46 billion (US$443.6 million).

Last week, PCCW reported a surprisingly deep loss of HK$6.1 billion (US$782 million) for 2003 as it wrote off the value of its stake in a struggling undersea cable joint venture.

PCCW also announced it would sell its property portfolio for US$841 million to Dong Fang Gas through a so-called "back door" listing. Shares in PCCW skidded by 7.5 percent on Monday, their first day of trade following the results and spin-off announcement.

© Reuters