China Netcom announced in mid-November that it has entered into a cooperation agreement with Spain-based Telefonica, by which the two companies together will become the biggest shareholder of PCCW, a Hong Kong-based telecom, holding a stake of 28%. Aside from China Netcom, which acquired a 20% stake in PCCW for US$1 billion last year, Telefonica is reportedly to acquire an 8% stake in PCCW for 323 million Euros (US$413.9 million; US$1 = 0.8 Euro).