Why this deal changes everything

The takeover of Cable & Wireless HKT will crown an astonishing first year for Internet company Pacific Century CyberWorks – and it sets some interesting financial precedents. Most significantly, it shows that a start-up can swallow an old economy business many times its size if the market values the former on what it might turn into rather than what it is now. It's a situation that gives great power to analysts; and this merger said plenty about them too. PCCW's managing director, deputy chairman and CFO are among those who state their case to Asiamoney in this special report. By Chris Wright.