Two of Hong Kong’s largest internet service providers will form one company in an aggressive takeover bid, according to reports in the Asian press. Hong Kong Telecom IMS Netvigator, HK’s largest ISP with around 250,000 subscribers, plans to buy Star Internet (SI) for HK$240 ($31m). The sum has been agreed with SI’s parent company, Star Telecom – a Hong Kong based concern not to be confused with the US telecommunications company of the same name. However, an industry source cited in the Asian press said that SI’s management is strongly opposed to the acquisition on the grounds that the companies differ greatly in corporate culture and business practice. The source also said the merger would result in an extensive layoff of ST staff. The combined ISP would dominate the internet dial-up market in Hong Kong, controlling around 70%. An official announcement is expected this week.
