CABLE AND WIRELESS DETAILS MERGER OF H.K. UNITS
  Cable and Wireless Plc <CAWL.L> said it
  will merge its Hong Kong Telephone Co Ltd <TELH.HK> and <Cable
  and Wireless (Hong Kong) Ltd> units into a new holding firm to
  be called <Hong Kong Telecommunications Ltd>.
      Under the merger, H.K. Telephone shareholders will receive
  two H.K. Telecommunication shares at a par value of 50 H.K.
  Cents for each H.K. Telephone share at par of one dlr.
      H.K. Telephone shareholders other than the Cable and
  Wireless group will receive warrants on a one-for-five basis
  entitling them to acquire from Cable and Wireless Plc within
  five years one H.K. Telecom share at 10 dlrs each.
      The Cable and Wireless Plc group now holds some 70 pct of
  H.K. Telephone. It also owns 80 pct of Cable and Wireless (Hong
  Kong), while the Hong Kong government holds the balance.
      Trading in H.K. Telephone shares was suspended on October
  15. The shares last traded at 19.30 dlrs.