Despite receiving bids from a host of private equity firms, PCCW—Hong Kong’s dominant telecommunications operator—said Sunday that it would scrap plans to sell up to a 45% stake in HKT Group, a newly-created holding company for its fixed line, broadband and TV assets. Reached on Sunday after an emergency board meeting, the decision is reflective of continuing turmoil in the global financial markets where investors have experienced difficulty raising the capital needed to fund acquisitions. PCCW, which commenced the sale process in May, had hoped to raise in excess of US $2.5 billion, which, in turn, would be used to finance the company’s expansion into foreign telecom markets. Sources indicate that Bain Capital LLC, Providence Equity Partners, TPG Inc., Macquarie Group and Apax Partners were among the entities that had been shortlisted to bid. Notwithstanding the private equity response, PCCW experienced a significant decline in its share price during the past few weeks, which, according to one analyst, “factored in the likelihood that a sale [wouldn’t] be completed.” While confirming that the board “was encouraged by the interest shown,” PCCW group managing director Alex Arena said, “we strongly believe that the bids received were not sufficiently attractive for us to continue this process.”