Richard Li to challenge decision to block PCCW buyout

Sep. 4, 2009 (China Knowledge) - Pacific Century Regional Developments, the Singapore-listed holding company of billionaire Richard Li Tzar-kai, yesterday filed a statement with the stock exchange saying it intends to challenge the ruling that blocked its plan to privatize PCCW<0008>, Hong Kong's largest fixed-line operator.

The statement said Pacific Century would take the appeal to Hong Kong's Court of Final Appeal in hopes of overturning an earlier judgment based on claims that the February shareholder vote in favor of the buyout was engineered. The Court of Appeal denied Li's request to appeal last month.

PCCW, though mainly in favor of the appeal, is not officially supporting the appeal, partly because some of its shareholders objected on the basis that since Li's buyout offer has been withdrawn, the outcome of the appeal is of theoretical legal importance only.

Li's US$2-billion buyout of PCCW through Pacific Century and Starvest Ltd, another company under his control, was first upheld by the High Court in April but then blocked following an appeal by the Securities and Futures Commission.