PCCW buyout bid scuppered

Investment tycoon Richard Li has given up the ghost on his attempts to stage a $2bn buyout of PCCW, which may or may not mean the end to the ongoing saga involving the leading Hong Kong operator.

Richard Li, son of Asia’s richest man, Li Ka-shing, said this week that the lengthy legal battles, controversy and debate surrounding the deal “have not only brought an additional and unnecessary burden to the company but have also been unnecessarily divisive to society”.

Minority shareholders recently voted in approval of a $2bn buyout offer by a partnership of 20 per cent PCCW stakeholder China Netcom and Li’s other investment vehicle, Pacific Century Regional Developments (PCRD).

However, the deal was scuppered when a court sided with the Securities and Futures Commission, which found irregularities in the way the deal was handled and sought to block its go ahead.

As a result of the ruling, Li has allowed his offer to lapse, presumably putting an end to the buyout bid. At least for now.