Hong Kong court approves PCCW buyout bid

Wednesday, April 8, 2009 at 1:08 AM Posted by Beijing News


A Hong Kong court approved telecom giant PCCW's controversial privatisation bid, despite allegations by the city's financial watchdog of vote-rigging.

Presiding judge Susan Kwan gave the scheme the green light in Hong Kong's High Court.

"On the evidence before me, I am satisfied that the scheme is one as to which an intelligent and honest man... and acting in respect of his interests might reasonably approve," Kwan said, in a written judgement.

"I therefore exercise my discretion to sanction the scheme."

The decision follows a two-day hearing last week, where the Securities and Futures Commission SFC and disgruntled shareholders opposed the scheme to take the city's largest fixed-line operator into private hands.

The SFC claimed the shareholder vote approving the buyout by PCCW chairman Richard Li and his partner China Netcom had been manipulated unfairly.

The SFC said in court the scheme had only gained shareholder approval at February's vote after insurance agents for Fortis Insurance Company Asia were given tranches of shares on condition they backed the privatisation.

Kwan said there was no substantial evidence that the vote had been rigged and the SFC's argument was "merely suspicion".

Li is the son of one of Asia's richest businessmen, Li Ka-shing, and has tried several times in the past three years to take private control of the firm.

The drawn-out battle has gripped the tycoon-obsessed financial hub and highlighted the interconnected group of businessmen that control many of the city's major firms.

PCCW and Li have repeatedly said they had no knowledge of any vote-rigging.







A sea lion swims near the Palomino islands. REUTERS/Enrique Castro-Mendivil

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