PCCW and Telstra announce strategic alliance

Honkong's Pacific Century CyberWorks and Telstra, the telecommunications giant of Australia, have announced plans to enter into a strategic alliance that aims to merge and spin off the two companies' mobile and internet backbone businesses. The deal will see Telstra invest $1.5 billion in PCCW through the purchase of a convertible note. Telstra will also invest $1.5 billion into the newly merged regional mobile phone company as well as injecting mobile assets worth $1 billion.