HONG KONG (AP) -- Tycoon Li Ka-shing teamed up Monday with Global Crossing Ltd., a Bermuda-based fiber optic network operator, in a $1.2 billion telephone and Internet venture that eventually could expand from Hong Kong into mainland China.
Li's conglomerate, Hutchison Whampoa Ltd., already operates a fixed-line telephone system in Hong Kong to be connected to Global Crossing's cable network that includes parts of Asia, North and South America and Europe.The venture, Hutchison Global Crossing, will target mainly high-volume business customers ranging from multinational corporations to government departments and other telecommunications providers. Global Crossing will give Hutchison $400 million in stock, as well as space on its fiber optic network, in exchange for a 50 percent stake in the venture.
The venture partners hope to move into mainland China as it "sustains and expands its remarkable economic successes and becomes a central player in the world economy in the new millennium," said Jack Scanlon, chief executive of Global Crossing.
Global Crossing said in a statement its network is positioned to be available to more than 80 percent of the world's communications traffic. Its network already carries more than 300 Internet brands, including Yahoo! and The Motley Fool.