PCCW to clear up ‘market rumours’

27 Nov 2006

Hong Kong’s dominant fixed line operator PCCW suspended trading of its shares today pending a statement clarifying ‘rumours in the market,’ reports Bloomberg quoting an e-mail from company spokeswoman Joan Wagner. Pacific Century Regional Developments Ltd, the holding company through which PCCW chairman Richard Li owns 23% of the telco, yesterday issued a statement denying a report that Li was seeking to block Pacific Century’s sale of the stake. Li backtracked on his original support of the sale to a group led by Hong Kong banker Francis Leung because of the involvement in the deal of his father, Li Ka-shing, according to a report in local newspaper The South China Morning Post on 25 November, which cited unidentified sources. Pacific Century, 75%-owned by Richard Li, told PCCW’s senior management that there will be enough proxies to defeat the sale proposal when Pacific Century’s shareholders vote at a meeting on 30 November. Bloomberg writes that Pacific Century yesterday said its minority shareholders are free to reach their own decision on the offer, and Li will be barred from voting because two of his father’s charitable foundations are in Leung’s buying group.

Hong Kong, PCCW Group