(SinoCast via NewsEdge) Asia Satellite Telecommunications (AsiaSat) has failed in its bid to privatize and file an IPO at the New York Stock Exchange, the firm said.
The US Department of State said no to the deal, prompting AsiaSat to withdraw an IPO plan it announced last April
'They cannot accept a fact that there are only two big stockholders in AsiaSat," William Wade, deputy CEO of AsiaSat said.
The executive also said listing on the New York Stock Exchange may also be "too expensive."
Wade said AsiaSat's board of directors would now look at the Stock Exchange of Hong Kong to continue the firm's HK$ 2.2 billion ($295 million) privatization plan.
Established in Hong Kong, AsiaSat has previously two big stockholders, CITIC Group and SES Global, which each took a 34.45% stake in the venture.
There are rumors in the market that the Department of State is not willing to let CITIC Group further control AsiaSat.
However, Wade did not comment, saying that the US government does not want to see AsiaSat have only two stockholders.
Â© 2007 Sinocast
Â© 2007 Dialog, a Thomson business. All rights reserved