Rupert Murdoch's News Corporation, which backed the losing bidder in the battle for C&W HKT , is now cosying up to victor Pacific Century CyberWorks by stating both are "very committed" to pursuing an internet and pay television joint venture.

Mr Murdoch's youngest son, James, said News Corp wanted to work with Richard Li, who controls PCCW, the 10-month old internet start-up.

News Corp earlier this week announced it had withdrawn a $1bn investment in Singapore Tele communications, the losing bidder in the £24bn takeover of C&W HKT.