C&W move to issue exchangeable bonds neutral for PCCW share price: analyst

HONG KONG (AFX-ASIA) - Cable & Wireless PLC's decision to issue zero  coupon bonds exchangeable for Pacific Century CyberWorks Ltd stock will be  neutral for PCCW's share price, an analyst with a foreign research house said.      Other than removing the long-standing overhang on PCCW stock, the move  indicates that C&W is desperate to get rid of its 14.7 pct stake in the  company.      The analyst however was sceptical about whether there will be any takers  for the bonds, given the initial lack of buyers for C&W's direct stake in  PCCW.      "I am not too sure who will subscribe to the bonds. If they couldn't find  buyers before, can they find buyers for the bonds now?"      He said C&W has been trying to get rid of its PCCW shares for quite a  while now and a bond issue seems the best option at the moment.      "They are just re-packaging the shares into a derivative option. That is  all.      "I would say it is neutral. I wouldn't say it is negative although we  tend to look at it as negative as we were expecting strategic investors to  take up the stake."      While the move will remove the overhang on PCCW shares, "all the bad news  on the company, ranging from its future outlook, lack of growth potential and  negative assets" will continue to weigh on sentiment, the analyst added.			

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