Melco declines after CLSA cuts earnings estimate

Melco International Development Ltd, controlled by the son of Macao billionaire Stanley Ho, fell in Hong Kong trading after CLSA Asia-Pacific Markets cut earnings estimates of its casino venture.

The casino operator controlled by Lawrence Ho fell 3.7 percent to HK$3.64 in Hong Kong trading yesterday, the most in more than three weeks. That trimmed Melco International's gain over the past year to 63 percent, compared with a 59 advance for the benchmark Hang Seng Index.

CLSA analysts Aaron Fischer and Huei Suen Ng cut their fourth-quarter estimated earnings before interest, taxation, depreciation and amortization for Melco Crown Entertainment Ltd to $6 million from $65.1 million in a note to clients dated yesterday.

Changing the way it deals with operators who bring high rollers to casinos may reduce the commission Melco Crown pays to 1.25 percent from 1.35 percent, the analysts said.

Melco International spokeswoman Maggie Ma wouldn't immediately comment on the report.

Hidili drops in Hong Kong after convertible bond sale

Hidili Industry International Development Ltd, the mainland coal mining company, fell after selling 1.71 billion yuan ($250 million) of 1.5 percent convertible bonds to repay debt and fund expansion.

Hidili fell 4.7 percent to HK$9.23 as of the 12:30 pm trading break in Hong Kong after it offered renminbi-denominated and US dollar-settled convertible bonds due in 2015. The notes convert into stock at HK$12.58, according to data compiled by Bloomberg.

The notes are callable after three years if the stock price is equal to or more than HK$16.354, the data show. Investors also have the right to sell the bonds back to the company after three years.

Ex-Centaurus HK head to start Asia event fund

Tiresias Capital Ltd, a Cayman-based hedge-fund manager overseeing $560 million, plans to start its first Asian fund this quarter to take advantage of an expected increase in mergers and acquisitions in the region.

The "event-driven" fund will begin investment with $50 million of capital from Tiresias, said its manager Matthew Moskey, ex-Hong Kong head of London-based Centaurus Capital Ltd Tiresias plans to open the fund to outside investors later.

Hong Kong billionaire Li Ka-shing's Hutchison Whampoa Ltd last week offered to take a phone unit, Hutchison Telecommunications International Ltd, private in a HK$4.23 billion ($545 million) deal.

Mainland's Evergrande kicks off bond roadshow

Evergrande Real Estate Group launched a series of investor presentations yesterday ahead of a potential five-year dollar bond offering, a source close to the deal said. The road show opens in Hong Kong yesterday and today before moving to Singapore on Friday, London on January 18, Boston on January 19, New York on January 20 and concluding in Los Angeles on January 21. The size of the offer had yet to be decided, the source said.

BofA Merrill Lynch is the sole global coordinator, while Goldman Sachs and BOC International are joint bookrunners. Moody's Investors Service has assigned a B1 rating to the planned sale.

China Daily/Agencies

(HK Edition 01/14/2010 page4)