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From The Asian Wall Street Journal Feb 26
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A deal last week between Li Ka-shing's Hutchison Whampoa Ltd. and his son Richard Li's Pacific Century CyberWorks Ltd. could signal how two of Hong Kong's corporate giants, once fierce competitors, have found a way to live together.
In the deal announced Thursday, Hutchison ended up with 0.83% stake in CyberWorks, priced at HK$803 million (US$102.9 million) at that day's closing price, in exchange for an international satellite-communications business. Both sides agreed the satellite-communications operation made more sense inside CyberWorks than Hutchison. It's the latest sign that the two giants are finding ways to co-exist.
From fixed-line and wireless to international telecommunications business, Hutchison once saw the offering of every new telecom license in the city as a battleground to attack Hong Kong Telecommunications Ltd., the old British-controlled phone monopoly that dominated this city's telecom industry. Hutchison seemed to relish every opportunity to compete with the larger but slower rival. But now that the younger Mr. Li has swallowed Hongkong Telecom, Hutchison is chasing different prey.
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