Intel is the bond villain as telco shares fall

NEWS Shares in Hong Kong telco Pacific Century Cyberworks (PCCW) fell this morning after Intel acquired a 1.4 per cent stake in the company with the purchase of $100m of exchangeable bonds. PCCW shares, listed in Hong Kong, were down 3.45 per cent by 09.30(GMT), while Intel shares, listed in Germany, fell 1.54 per cent. Intel can exchange the bonds for shares in PCCW at a set price of 32 cents, when they mature between 2006 and 2007. PCCW said it will use the investment to reduce debts and finance future investments. Four months ago it sold $250m in exchangeable bonds - a 3.7 per cent stake in the company - to a group of US investors.