Pacific Century CyberWorks

13 Mar 2000

Pacific Century CyberWorks Limited ("PCCW")

SIMMONS & SIMMONS ADVISES PACIFIC CENTURY CYBERWORKS ON US$35.9 BILLION TAKEOVER OF CABLE AND WIRELESS HKT

Pacific Century CyberWorks Limited ("PCCW"), a Hong Kong-listed internet company with a market capitalisation of approximately US$29 billion, announced on 29 February its offer to acquire Cable and Wireless HKT Limited ("HKT"), an integrated communications company, for US$35.9 billion. The terms of the Offer have been agreed by Cable and Wireless plc which currently owns a 54% stake in HKT. PCCW will, on completion of the transaction, be the third largest company on the Hong Kong Stock Exchange. The transaction is one of Asia's biggest ever corporate takeovers.

The deal was announced before a recommendation from the offeree could be obtained and the announcement reserves the right for PCCW to structure the acquisition as a takeover offer or a scheme of arrangement.

Simmons & Simmons was appointed to advise PCCW on 11 February and quickly pulled together an international team of lawyers from its Hong Kong and London offices to advise on all legal aspects of the deal. The instructions were won in Hong Kong where Simmons & Simmons was recommended by Warburg Dillon Read.

The law firm used the same approach to resourcing the deal as the investment bankers, flying London partners to Hong Kong to support the Hong Kong team and operating a London command centre in tandem with Hong Kong to take advantage of the two time zones.

The Hong Kong team was led by Nick Norris, head of corporate, assisted by Phillip John and Henry Ong with Katie Gibson (telecoms regulatory), Jeremy Hoyland, Prisca Lo and Sean Bulmer (banking) and Paul Li (compliance with securities regulations).

Stuart Evans (head of corporate finance in London) worked with Nick Norris for a week in Hong Kong advising on strategic issues. Nicholas Fisher (banking) flew to Hong Kong to lead the firm's banking team on the US$12 billion syndicated bank financing.

In London the corporate team was Stuart Evans, Damon Le Maitre-George, Selina Sagayam, Tim Field, Adrian Mayer and Clare Readman.

Stuart Evans commented:

"This is a dynamic industry and the legal technology for the deal is very dynamic too. We are delighted to be working with Pacific Century CyberWorks on this ground breaking deal."

Warburg Dillon Read (Asia) Limited and BOCI Asia Limited acted as financial advisers to PCCW. Credit Suisse First Boston (Hong Kong) Securities Limited advised on strategic and investor relations issues and Fried, Frank, Harris, Shriver & Jacobson acted as US lawyers.

Cable and Wireless plc were advised by Merrill Lynch (Asia Pacific) Limited, Greenhill & Co. and Allen & Overy.

ENDS

Notes for editors:

1. Simmons & Simmons is worldclass law firm with offices in London, Paris, Brussels, Düsseldorf, Lisbon, Milan, Rome, Madrid, Abu Dhabi, Hong Kong, Shanghai and New York with over 1,400 staff worldwide. For further information on Simmons & Simmons please visit our website at www.simmons-simmons.com.

2. The Corporate Department of Simmons & Simmons comprises over 220 legal staff (115 in London), including 47 partners (27 in London). It advises listed and unlisted companies and investment banks in the United Kingdom and internationally on corporate finance issues, mergers and acquisitions and all other aspects of corporate law.

3. Simmons & Simmons recently became the first law firm to launch as a free Internet Service Provider. elexica.com brings together the best sources of legal knowledge on the Internet and provides the first open online community for lawyers by an international law firm. For more details on elexica, go to www.elexica.com.

4. Nick Norris is profiled as a leading lawyer in Hong Kong by Chambers Global. His attention to detail is "the highest in Asia" and he has "a good bedside manner with clients".

5. Stuart Evans and Damon Le Maitre-George last year won instructions to act for Wal-Mart on its £6.7 billion agreed takeover of Asda Group, the largest ever cash takeover bid in the United Kingdom.

6. For further information, please contact:
Stuart Evans, Head of Corporate Finance, London
Louise Resnick, Media Relations Manager on 020 7628 2020