Whampao Bids for Hutchison Telecom

Mayank Mehta
08 Jan, 2010
New York City

Stocks in China stayed near their recent highs as the nation battles sever cold in the northern region. China approved new investment tools that allow investors to bet on the falling markets. Hutchison Whampao offered HK$2.20 a share for Hutchison Telecom.

[R]8:00 PM Hong Kong, China – Stocks in China stayed near their recent highs as the nation battles sever cold in the northern region. China approved new investment tools that allow investors to bet on the falling markets. Hutchison Whampao offered HK$2.20 a share for Hutchison Telecom.[/R]

Stocks in Shanghai and Hong Kong increased slightly as the nation battles severe weather in the northern region. Metals and energy related stocks declined. Securities stocks gained after regulators approved the new investment instruments.

Hang Seng index in Hong Kong increased 27.30 or 0.12% to 22,296.75, and CSI 300 index in China added 8.67 or 0.25% to 3,480.13.

HK Movers

Cheung Kong (Holdings) Limited rose 0.3% to HK$102.20 after the flagship property company is expected to offer pay increase to 90% of the employees.

China Mobile Ltd increased 1.7% to HK$74.45 and the company board decided to fire Vice Chairman Zhang Chunjiang. Zhang has been under investigation by Chinese authorities for possible accounting irregularities while he was at China Netcom Group Corp. The parent, China Mobile Communications owns 74.3% of the Hong Kong listed company.

China Unicom (HK) Limited the telecom operator fell 1.9% to HK$10.08.

Hutchison Whampoa Limited closed unchanged at HK$56.35 an investment holding company offered to take its Hutchison Telecommunications Ltd. unit private in a HK$4.23 billion or $545 million in cash deal that will give billionaire Li-Kashing control of the company. The company has operations in emerging markets including Vietnam and Indonesia.

Hutchison Telecommunications International Limited surged 28% to HK$2.12 after the majority shareholder with 67% stake, Li Ka-shing controlled Hutchison Whampoa Ltd offered to take company private for HK$2.20 a share.

Li & Fung Limited added 1.9% to HK$33.90.

PCCW Limited the provision of local, mobile and international telecommunications services gained 2.0% to HK$2.00.

Shanghai Movers

Chinese regulators approved the introduction of new investment tools. Chinese Securities Regulatory Commission permitted the introduction of short selling, margin trading and index futures.

The anticipated move lifted the stocks of securities brokers. Haitong Securities Co increased 1.8% to Rmb18.93 and Citic Securities Co. added 1.9% to Rmb32.26.

Property stocks continue to rise as the government holds its pledge to rein speculative buyers. China Vanke Co increased 0.7% to Rmb10.35 and Poly Real Estate added 1.3% to Rmb21.49.

GDP Power Development Co increased 1.6% to Rmb7.13 after the company said electricity generation in 2009 increased 3.3% to 62.4 million megawatt.

Metals and energy stocks declined following a decrease in international prices. Jiangxi Copper decreased 2.6% to Rmb40.21 and Zijin Mining Group dropped 0.8% to Rmb9.43.
PetroChina declined 1.2% to Rmb13.45.