brokers "sell" tag, page-3

re: brokers Hi extralite,

HTA is actually a proxy for HWL and to Hutchison's global 3G business. In this regard, the Australian 3G footprint is vital as it is considered necessary to complete a global footprint. This is muchc the same view as Vodafone originally took in relation to GSM back in 2003 when it established itself as GSM Arena in Australia.

The debt for HTA is either provided, guaranteed, or backed by, HWL and, therefore, not as much of an issue compared to, for example, other similar companies without a deep-pocketed parent.

To get a bit of an idea the size of HWL's operations, you need to consider that they sold out of Orange (selling to Mannesman) in 2001. In turn, Mannesman was taken out by Vodafone and again HWL cashed in (both cash and shares).

In 2002, HWL sold out of Voicestream in the States for >US$10B.

In late 2003, HWL still had cash and cash equivalents /near cash of A$50B.

To understand more about HWL you need to do a search of some of the past posts on this site (including some of mine dating back to last year). You also need to understand that HWL is actually in a number of different businesses, including:
1)
telecoms;
2)
ports;
3)
property;
4)
power generation;
5)
energy and oil (Husky in Canada);
6)
life sciences, etc.

Within the Australian environment, the Cheung Kong connection extends to HTA, Powercor, ETSA Utilities, Envestra, CitiPower, etc (including several of the main roads' projects currently under way in Sydney).

As to the specifics of your question, HTA would not be viable without the continuing support of HWL. That's why HTA is, in effect, a proxy for HWL in Australia.

I will though try and post a more considered view in the near future (a bit tied up at the moment).

You should also consider the following:
1)
additional commentary yesterday suggesting that TLS is getting ready to acquire the Orange CDMA network;
2)
several interviews by Canning Fok overnight expressing optimism concerning the global progress of 3G; and
3)
this afternoon's commentary by DrKW in Europe (see, below).

I'll get back to you on the remainder of the matters asap.

............................................
The following is the DrKW report on Hutchison (3):

Global / Telecom Equipment

Hutchison's exuding confidence

Foreshadowing what looks like reassuring business progress (subscriber intake, revenue growth), the manager director of Hutchison (3) exudes confidence that its 3G operation may be ahead of its break-even EBDITA target for 2005.

The interview, transmitted through Reuters on Monday morning CET, suggests most transparently that business momentum is picking up materially for the European 3G entrant following the launch of LG's and NEC's new handset models.

After registering 1.73m active users at the end of May, Hutchison, we believe, looks set to approach the 5m barrier by the end of calendar 2004 (LG alone has been contracted to deliver 3m units and NEC, we
infer, another 2m).

Aside from the latest batch of heavily subsidized, miniaturised and appealingly designed dual-mode terminals, prospective end-users have also been attracted by very generous volume-usage campaigns
(including free intra-network calls).

Successful inroad of Hutchison into Europe's established cellular fortress constitutes a vital ingredient for traffic expansion (as GSM incumbents respond through steep price cuts) and a sustainable
recovery in mobile systems spending.