Regulator to probe PCCW/Sunday deal

15 Jun 2005

Hong Kong’s Securities and Futures Commission (SFC) has revealed it will investigate allegations of insider trading prior to PCCW’s acquisition of Sunday. PCCW announced on Monday that it would buy 59.9% of Sunday for HKD1.16 billion; it will then offer a mandatory cash offer for the remaining shares. However Sunday’s share price and trading volume rose sharply last Friday, raising the suspicions of the SFC. According to submissions made to the Hong Kong Stock Exchange PCCW chairman Richard Li has spent HKD138 million buying shares in Sunday in eleven tranches since 6 April, raising his stake to 26.56%.