The Hong Kong stock exchange has denied PCCW's request to spin off its telecom business into a listed business trust.
PCCW said in a statement that it will appeal the decision, which it believes is not justified.
The Wall Street Journalspeculates that the exchange may have decided that whatever would remain of PCCW after the spin-off of its telecom business - and the earlier spin-off of its ports business - would be insufficient to justify being a separate listed company.
PCCW separately announced a partnership with Thai state-owned operator CAT Telecom to co-develop telecom services.
The partners will co-operate on providing connectivity services in Thailand, Hong Kong and internationally. Both will jointly provide international connectivity through various subsea cable systems.
CAT Telecom recently established a point of presence in Hong Kong, setting the stage for the partnership.