Shareholders of Hong Kong-based telco PCCW approved the controversial, long-discussed $2.1 billion privatization of the company this week, but within hours of that approval, Hong Kong Securities and Futures Commission officials seized the voting records and said they will be "making inquiries," according to a statement. The Wall Street Journal reported that that the deal seemed uncertain this week after local reports that some investors allegedly "received additional PCCW shares in exchange for supporting the offer."
PCCW Chairman Richard Li and partner China Netcom led the buyout bid late last year after PCCW had earlier sought to create a telecom and media spin-off, a plan sabotaged by economic downturn. PCCW also reportedly had been looking to expand internationally last year.
- The Wall Street Journal has this report
PCCW's privatization bid collected opposition in December
PCCW's privatization price was much debated
PCCW's idea for a telecom and media spin-off fizzled