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A Hutchison Whampoa subsidiary is close to forging a partnership with a United States-based e-commerce company in what would be a big step forward in the group's global Internet strategy, according to sources.

 The unit - Hutchison E-Commerce Resources - could conclude an agreement with a listed US company next week, the sources said.

 Details of the arrangement were under discussion, the sources said.

 The alliance would strengthen Hutchison's integrated on-line services, with the deal covering everything from content and e-commerce to business solutions, they said.

 Hutchison also aimed to list three of its Internet ventures this year - Tom.com, fixed-line operator Hutchison Global Crossing and Hutchison E-Commerce Resources - according to analysts who recently met senior executives.

 Tom.com and Hutchison Global Crossing have already appointed BNP Peregrine and Goldman Sachs to act as sponsors for their listings, the analysts said.

 Hutchison E-Commerce Resources, meanwhile, is planning to organise all Hutchison Group e-commerce activities under the same roof.

 This would mean the unit handling the e-commerce operations of Hutchison's business-to-consumer companies such as ParknShop, the supermarket chain, as well as its business-to-business companies such as Hongkong International Terminals (HIT).

 Hutchison E-Commerce Resources would also hold such Hutchison Group assets as the $230 million worth of convertible notes in COMPUTER & TECH and Transportation Community Network (TCN).

 TCN, which provides supply-chain solutions to shipping lines, has an 80 per cent stake in the Web site arena.com among its assets.

 HIT has increased its stake in TCN to 80 per cent from 20 per cent last year.

 Eddie Lau Kwok-Lap, an ABN Amro analyst, estimated the value of arena.com at $4.8 billion, assuming a price-to-sales ratio of 200.

 'Hutchison would see a lot of Internet-related deal flows this year,' Mr Lau said.

 'The coverage of business can be pretty broad,' Mr Lau added.

 He said Tom.com would be responsible for content, while Hutchison Global Crossing would focus on infrastructure and Hutchison E-Commerce Resources on e-commerce and business solutions.

 Analysts said it was difficult to assign a value to all of Hutchison's Internet assets.

 'The size of Hutchison's Internet assets could be unbelievably high,' an analyst said.

 The analysts estimated the value of Hutchison Global Crossing at more than $20 billion, while Tom.com's valuation was put at between $10 billion and $30 billion and Hutchison E-Commerce Resources's valuation at $30 billion.

 Many blue-chip companies in Hong Kong were searching for exciting on-line projects, but none had made the kind of progress Hutchison had, the analyst said.

 'When it comes to technology, Hutchison is three or four years ahead of other blue-chip competitors, many of whom are still just talking about the business,' the analyst said.

 Hutchison chairman Li Ka-shing said this week that the group's Internet business had been in operation for at least three years.

 'The work has been done for a long time,' Mr Li said.

 'A lot of potential could be seen in the Internet world that could complement our business,' Mr Li added.



Hutchison lines up key Internet deal