Hong Kong's Securities and Futures Commission announced Thursday it is moving to block the $2 billion buyout of PCCW. Regulators told a court reviewing the deal to privatize the company that a Februrary shareholders vote was rigged.
An attorney for the Commission said that an executive at Fortis Insurance Company (Asia) handed out about a half million PCCW shares to Fortis employees in order to sway votes in favor of the deal. Employees voting on the deal would have never have been registered to vote on it if the company executive had not supplied the shares days before the vote.
PCCW and its partners have denied any involvement. A written ruling in the case is expected on Monday.
- Read the story at the Seattle Times. Article.
PCCW deal approved by shareholders, but inquiry awaits
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