Pacific Century Regional Developments Ltd, part of the group that offered US$1.9 billion to buy out PCCW Ltd, said it got shareholders' approval to pursue the takeover of Hong Kong's biggest phone company.
Pacific Century shareholders accepted the company's plan to join the bid for PCCW at a meeting in Singapore yesterday, a statement filed to the Singapore stock exchange said.
Pacific Century Chairman Richard Li and China Network Communications Group Corp, owners of a combined 48 percent of PCCW, last month said they will together offer HK$14.9 billion (US$1.9 billion) to buy the remainder of the Hong Kong company. Yesterday's result cleared the way for PCCW to hold its own shareholders' meeting to vote on the buyout plan today, Bloomberg News said.
PCCW investors should reject the buyout plan as the offer was too low, proxy advisory firms Glass, Lewis & Co and RiskMetrics Group Inc said on December 16. The takeover bid came after the Hong Kong company's shares slumped to a nine-year low in October, following its decision to drop the sale of part of its main operating unit.
PCCW shares rose 3 percent to close at HK$3.45 in Hong Kong, against the HK$4.20-a-share buyout offer from Li and China Network. Pacific Century shares rose 3.6 percent to 14.5 Singapore cents (10 US cents).
(Shanghai Daily December 30, 2008)
