HONG KONG – PCCW the property to telecoms giant has seen its attempt to sell its phones and media interests become a victim of the ongoing global financial crisis.

The Hong Kong company controlled by Richard Li Tzar-kai Sunday announced a "discontinuation of the auction process" for HKT Group Holdings.

In a statement to the stock exchange it said: "The Company received substantial interest in HKTGH and formal proposals from several bidders. However, the recent market downturn has significantly impacted the offers received, and the board, having carefully considered these proposals, has unanimously decided to discontinue the auction process. The board concluded that the offers were not sufficiently attractive."

PCCW previously tried to spin off its telecoms and media units only to have the sale blocked by Chinese authorities and Singaporean minority shareholders. This summer it restarted the disposal process and hoped to realize up to $2.5 billion from the sale of a 45% stake in HKT.

It short-listed seven bids in August, but according to local media sources the consortia have since revised down their offers with one tender reportedly reduced as low as $450 million.

Twin problems appear to be the private equity funds' inability to raise debt finance and the recent sharp slide on world stock markets which has raised doubts about valuations of several asset classes.

PCCW's HKT unit includes the world's pioneering IPTV group Now Television, which this year overtook its cable rival to become Hong Kong's leading pay-TV platform.

© Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

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