Catch a Character ...

Hello everyone,

I am trying to catch a special character with the following style sheet:

<xsl:param name="specChar" select="'\u201C'" />

    <xsl:output indent="yes" method="xml"/>
    <xsl:strip-space elements="*"/>

    <xsl:template
match="CATALOOM-OPENENGINE/PRODUCTS/PRODUCT/PRODUCTREVISION">
    <xsl:variable name="primKey2">
            <xsl:value-of select="substring-before(@primarykey, '/')"/>
    </xsl:variable>

     <xsl:for-each select="FEATURE/VALUE">
        <xsl:variable name="cdata">
            <xsl:value-of select="FEATURE/VALUE/text()"/>
        </xsl:variable>

        <xsl:if test="contains($cdata, $specChar)">
            <xsl:text>Found: </xsl:text>
            <xsl:value-of select="$primKey2" />
            <xsl:text>&#10;</xsl:text>
        </xsl:if>

    </xsl:for-each>

    </xsl:template>


I am not getting any hits, though there should be a couple of thousands.
A few questions:

Is there anything overly wrong with this stylesheet?
The XML is like

<PRODUCTREVISION>
<FEATURE><VALUE>...</VALUE></FEATURE>
</PRODUCTREVISION>

How do I have to mask a unicode char inside a string inside  a stylesheet?