Bidding war brewing for Hong Kong's PCCW

A bidding war is brewing over Hong Kong's PCCW, whose assets include mobile operator Sunday Communications. A second bidder has reportedly surfaced to take over the company's telecom and media businesses. In addition to Australia's Mcquarie Bank, Newbridge Capital, a division of U.S. private equity firm Texas Pacific Group, is considering an offer of $6.44 billion for the fixed-line network, broadband TV service and cellular businesses of PCCW. PCCW pulled its shares and those of the mobile business on Wednesday "in respect of a possible transaction," according to a company statement. However, the Chinese government could block any takeover to a foreign entity. State-owned China Netcom, the largest fixed-line operator in mainland China, owns 20 percent of PCCW and opposes the potential change in ownership. "We do not want to see any changes in PCCW, which is owned and managed by Hong Kong people, nor any changes in its key assets," it said.

For more about the bid for PCCW:
- check out this article from Dow Jones