Frustrated chairman increases stake in PCCW

6 Dec 2006

PCCW’s billionaire chairman Richard Li, fresh from successive failed attempts to sell a controlling stake in Hong Kong’s primary telco, has performed a surprising u-turn by buying up an additional 41 million shares in the company, according to the Hong Kong Stock Exchange. In a disclosure yesterday, the bourse reported that Li paid HKD198 million (USD25.4 million) for the new shares to take his overall direct and indirect holding to over 26%, and he told news service Forbes.com that he may buy more. The purchase came only a day after minority investors in holding company PCRD rejected his bid to sell a 22.62% stake in PCCW to a consortium led by Hong Kong financier Francis Leung. Meanwhile, PCCW’s second largest shareholder China Netcom said yesterday that it had no plans to up its 20% interest.

Hong Kong, HKT/PCCW (incl. CSL), PCCW Group