PCCW deputy chief among bidders for 50pc holding in CNC
China Network Communications Group (Netcom), the mainland's second-largest fixed-line operator, is seeking at least 318 million yuan for its 50 per cent stake in a broadband service venture with PCCW, according to a notice from the China Equity Exchange Information Centre.
A source close to the group indicated that PCCW deputy chairman Edward Tian Suning is leading a consortium to join the bidding for the asset. The bidding closes on March 7. Mr Tian could not be reached for comment.
CNC Broadband was set up in 2005 to offer broadband access services in Hangzhou and Ningbo as part of the two companies' joint expansion plans on the mainland. China Netcom Group bought a 20 per cent stake in PCCW for US$1 billion in early 2005.
'Edward's consortium is one bidder among three interested parties,' the source said. 'PCCW did know about the negotiations before the tender.'
The notice also stated that foreign investors were not eligible to join the bidding.
Mr Tian was the founder of CNC Broadband, formerly China Netcom Broadband. He also is a member of PCCW's China business development committee.
