C&W Exchanges PCCW Shares for CMGI Stake

Cable & Wireless PLC has exchanged $US500 million worth of Pacific Century CyberWorks Ltd. (PCCW) shares for shares in U.S.-based Internet firm CMGI Inc., according to company officials.

The exchange of shares is in accordance with an agreement reached earlier this year when Cable & Wireless announced a conditional merger with PCCW, giving Cable & Wireless unconditional rights to exchange PCCW shares for CMGI shares, officials said.

According to a company statement, Cable & Wireless and CMGI have now agreed to exchange 241,013,597 PCCW shares for 13,413,816 new CMGI shares, approximately 4.3 percent of CMGI's post exchange issued share capital.

As a result of this exchange, Cable & Wireless will reduce its fully-diluted shareholding in PCCW from 20.2 percent to 19.1 percent, officials added.

Under the terms of the original agreement between Cable & Wireless and CMGI, Cable & Wireless agreed to hold 50 percent of the new CMGI shares for a period of at least 6 months and the remaining half for a period of 18 months.

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