STOCKWATCH: PCCW lower after news of Chan resignation/iLink debut

HONG KONG (AFX-ASIA) - Pacific Century CyberWorks Ltd shares were slightly lower following the debut of unit iLink Holdings Ltd and news that its executive director George Chan has tendered his resignation, analysts said. They said given Chan's eight-year tenure with the company, his resignation would be negative, as PCCW is still working on its growth plan. However, they said that the company had bigger problems to deal with and the resignation was just a minor issue. At 11:48 am, PCCW was down 0.05 hkd at 4.20, off a low of 4.175 hkd, on turnover of 9.27 mln shares. iLink was traded at 1.53 hkd, up from its issue price of 1.28 hkd on 18.79 mln shares. The Hang Seng index was up 12.33 points at14,221.28 points. "(Chan's exit) is not too big a concern but it is still a concern. There are bigger issues hanging over PCCW," an analyst with a local brokerage said. Issues like the pending sale of Cable & Wireless PLC's 7.5 pct stake in PCCW, the company's 2000 results, its NOW operations, among others, are problems the company needs to address, he said. There are a lot of uncertainties facing the company and it is not surprising that executives working within the company would see the situation even clearer. "So, if they cannot stand the uncertainties, they would want to move elsewhere," he said, but added that in any new venture, it is understandable for there to be some uncertainties. "From time to time, the market should expect that some executives will leave. But, the excuse that Chan wanted to spend time with his family is too lame," he said. The analyst is calling a speculative buy on PCCW ahead of the release of its results as its share price is "quite depressed." The response to iLink has also been satisfactory and should have a positive impact on PCCW, he said. PCCW holds a 47.9 pct stake in iLink.

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