Cable & Wireless (C&W), which owns 54.5 per cent of Hongkong Telecom, yesterday raised its bid for Japanese telecommunications carrier International Digital Communications (IDC) to 67 billion yen (about HK$4.29 billion).
The move was seen as a bold attempt to beat out an offer made last month for the company by the giant Nippon Telegraph and Telephone (NTT), which has been endorsed by IDC's board.
C&W said it would bid 107,372 yen per share in cash, up from its reported initial offer of 100,000 yen per share, and is slightly higher than the 106,000 yen per share offer made by NTT, which values IDC at 66.1 billion yen.
The move is part of a determined attempt by C&W to develop a strong strategic position in Asia, with majority shareholdings in every big telecommunications market in the region.
Aside from its 54.5 per cent stake in Hongkong Telecom, it also owns more than 50 per cent of C&W Optus in Australia.
C&W's bid for IDC, would be a 100 per cent takeover, and is backed by the British Government.
London is keen to see a further opening of the Japanese telecommunications market, and made strong representations to Tokyo when IDC recommended the NTT bid.