Revised bid stops PCCW vote
30-12-2008
The two biggest shareholders of Hong Kong telecoms giant PCCW have made a surprise move to raise the price of their buyout offer shortly before minority shareholders were to vote on the bid. David Ford, chairman of the extraordinary general meeting of PCCW, told minority shareholders they were only notified about the revised offer from the company's chairman Richard Li, and his mainland state-owned partner, China Netcom, this morning. "The company has just received a letter from the joint offerers proposing the cancellation price increase from HK$4.20 per share to HK$4.50 per share," he said at the beginning of the meeting. The meeting was adjourned after a vast majority of the shareholders present agreed they needed more time to consider the revised offer. It was made after shareholder advisory firm Glass, Lewis & Co. recommended earlier this month that independent shareholders should reject the original offer, citing a low price and a lack of "compelling strategic rationale for the deal." But some shareholders remained dissatisfied and said they would object to the privatisation proposal. The bid will require the support of 75 percent of minority shareholders to pass. PCCW shares closed 3 percent higher yesterday at HK$3-45. Trading was suspended today.
