| Spain's Telefonica joins tycoon in buying controlling stake in PCCW |
HONG KONG, Nov 13 (AP) -- Spanish telecom giant Telefonica SA and two charitable foundations run by tycoon Li Ka-shing will join another Hong Kong businessman in buying a controlling 22.7 percent stake in local phone operator PCCW Ltd., the parties said.
Telefonica will purchase an 8 percent stake in PCCW, while Li's two charitable foundations are buying a 12 percent stake, they said.
The acquisition plans were announced in July by Hong Kong financier Francis Leung, who said he wanted to buy the stake in PCCW for HK$9.16 billion. At the time, he hadn't named the members of the consortium backing him in the deal.
Leung said in a statement Sunday that he will acquire the remaining 2.65 percent stake in PCCW and he expects to finance the acquisition through a combination of his resources, bank financing and a loan from Li Ka-shing -- Hong Kong's richest man.
Telefonica is already a partner with China Network Communications Ltd., a state-run Chinese company that owns about 19.9 percent of PCCW, through a 5 percent holding in its unit China Netcom Group Corp. (Hong Kong) Ltd.
Under the deal, Telefonica wants "to strengthen the alliance with China Netcom Group," Miguel Garzon, director of international communications for Telefonica, said.
The two charitable foundations, Li Ka-shing Foundation Ltd. and Li Ka-shing (Canada) Foundation, are buying stakes of 10 percent and 2 percent in PCCW, Li said.
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