PCCW's current Chairman and CEO Richard Li has abandoned his effort to appeal a court decision that prevented his company Pacific Regional Developments Ltd. from taking the Hong Kong telco private in a $2.1 billion buyout.
In the statement, the company said its decision not to appeal the ruling was made after "careful deliberation" and a focus on "drawing a line under this matter and focusing on the future." Previously, Li's company thought of appealing the appellate court's decision in Hong Kong's Court of Final Appeal.
And while Li's company is confident it could win in an appeal, the process would take time away from pursuing other ventures. "The board continues to believe the case for appeal is strong, but the reality of many further months of distraction resulting from proceeding with an appeal needs to be measured against the desire to focus on other business opportunities," the statement said.
The effort to privatize PCCW has been mired in controversy since the beginning when minor shareholders proxy advisory firms shot down Li's initial bid for the company. Then, after shareholders approved a revised bid for the company, Hong Kong's Securities and Futures Commission began an investigation into whether vote tampering affected the outcome.
- Wall Street Journal has this article
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