HK court upholds block on Li's PCCW buy-out plan

Dylan Bushell-Embling
19 Aug 2009

A Hong Kong court has rejected an appeal to overturn the ban on Richard Li's attempt to privatize PCCW.

The Hong Kong court of Appeal has refused to hear Li's case, the AP said, stating it would explain its reasons in a written judgment at a later date.

Li is still eligible to appeal to Hong Kong's highest court, the Court of Final Appeal. But a lawyer representing PCCW said any such appeal could be “academic,” as Li has abandoned the buyout, but it could touch on “issues the company will have to deal with in the future,” reported.

Li, in partnership with China Unicom, had offered to pay HK$4.50 ($0.58) per share, or over HK$16 billion, for the remaining 51% of PCCW the parties do not own.

Shareholders agreed to the terms, but that vote was subject to a court investigation over allegations of vote-splitting. A court found for Li, but prosecutors the Securities and Futures Commission (SFC) appealed and won.

The panel of judges responsible for yesterday's ruling was responsible for the ruling which blocked the sale, the Standardsaid.

A spokesperson for Li's investment company said it would consider its options before deciding its next move.

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