Surprise placement in Starhub

Strategic investor divests stake ahead of expected end of lock-up.

Singapore's MediaCorp sold a 6% stake in local triple-play telecom operator Starhub yesterday October 6. Originally no deal had been expected until at least October 12, as this is when a 12-month lock-up expires following the group's IPO last autumn.

However, lead managers Credit Suisse First Boston and UBS successfully sought a waiver in order to get a deal out before the stock came under short selling pressure from investors expecting an equity placement. But the lack of flexibility on timing meant the deal came against a poor market backdrop, with Asian markets trading down yesterday following the release of poor economic data in the US.

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