HK appeals court throws out Li Ka-shing scion’s PCCW bid

HONG KONG: Hong Kong billionaire Richard Li���s $2.1 billion acquisition of PCCW Ltd was blocked by the city���s court of appeal after the regulator claimed investors��� votes on the takeover were manipulated.

The decision overturned a lower-court judgment on April 6 and may extend Li���s five-month battle to buy PCCW, the city���s biggest phone company. PCCW said in a statement it was ���disappointed��� and would study the outcome before commenting further. The bidders have the right to appeal.

The ruling prevents Li, the son of Hong Kong���s richest man, from buying out dissenting investors after a 97% slump in PCCW shares in the past nine years.

The regulator���s unprecedented legal challenge rested on claims some investors were given free shares in exchange for supporting the buyout. ���It���s the court���s role to ensure not only the letter of the law is observed, but also the spirit of the law,��� said Fred Kinmonth, a partner at Minter Ellison Lawyers in Hong Kong. The ruling ���shows it���s not only enough to tick all the boxes,��� he said.