Malaysian telecoms equipment-maker Sapura Holdings has emerged to make a rival 11th-hour bid for Time Engineering and its telecommunications businesses, hoping to steal it from under Singapore Telecommunications' (SingTel) nose.
Sapura was rumoured to be working with Li Ka-shing's Hutchison Whampoa, but a short statement made to the Malaysian stock exchange yesterday made no mention of the Hong Kong player.
Sapura is apparently prepared to offer M$1 billion (about HK$2.04 billion) more than SingTel. If its bid succeeds, it will prevent a large chunk of debt-laden Time falling into Singapore hands.
'It is a sensitive issue,' said a Malaysian broker. 'If the Malaysian government doesn't want to give it to Singapore, then this is the perfect excuse.' Time, which controls a 3,600 kilometre fibre-optic network, is 47 per cent owned by conglomerate Renong, which in turn is associated with Malaysia's leadership.
There had been speculation SingTel's proposed merger with C&W HKT failed because Beijing was reluctant to see a key Hong Kong utility in foreign hands.
SAR Internet start-up Pacific Century CyberWorks, run by Li Ka-shing's son Richard Li Tzar-kai, emerged at the last minute as a preferred bidder.
Beijing was not thought to have any qualms with Singapore in particular, but foreign ownership in general.