Australia's main telephone network operator Telstra has offered to back Pacific Century CyberWorks's bid to take over Cable and Wireless HKT, A Hong Kong Newspaper reported on Wednesday.

The newspaper, which quoted unidentified sources, gave no details as to what this offer by Telstra could involve.

CyberWorks chairman Richard Li is believed to be seeking partners to help his Internet company secure control of Hong Kong's main telephone operator.

American Telephone and Telegraph Co. (ATetT), Hikari Tsushin, Japan's second biggest telecoms firm, and Britain's Vodafone Airtouch are among the companies whose names have already mentioned during frenzied speculation this week.

Wednesday's edition of the Hong Kong Economic Journal, added China Telecom to the list of companies that could be persuaded to join the CyberWorks consortium.

The Economic Times also reported that CyberWorks intends to sell CW HKT's mobile business to China Telecom if it succeeds in its bid to snatch HKT from the clutches of Singapore Telecommunications.

SingTel has been negotiating the purchase of a controlling stake in HKT from its British parent Cable and Wireless since last month.

The latest reports did little to excite traders on the Hong Kong stock exchange and the shares of both PCCW and HKT weakened in early trade.

In opening trade, shares in PCCW lost 0.05 cents to 26.30 Hong Kong dollars (3.38 US), while HKT fell 0.25 cents at 24.30 dollars.

"Both shares declined because of strong gains over the last few days and the absence of any further concrete news about the bid," said Ricky Tam, research director at Delta Asia Securities.

Cable and Wireless, which owns 54 percent of HKT, has insisted talks are continuing with Singtel.

But analysts believe that PCCW, if it can raise the funds for a takeover, is better-placed to secure control of HKT because of a reluctance in Hong Kong to see the company fall under the control of Singapore.