Monday, April 6, 2009

PCCW vote buying

Their confidence was well placed as apparently they have bought more than votes..

Court approves PCCW buyout, SFC to appeal
Reuters in Hong Kong
5:00pm, Apr 06, 2009     

A Hong Kong court said it would allow controlling shareholders of PCCW (SEHK: 0008) to proceed with a US$2.2 billion privatisation of the telecom firm after finding against the city’s securities watchdog in a case over alleged vote buying.

The Securities and Futures Commission (SFC) quickly said it will file an appeal against the decision allowing a company associated with PCCW Chairman Richard Li Tzar-kai, and China Netcom, to proceed with their buyout offer.

“I have concluded that the statutory majority who voted for the scheme were acting in bona fide [good faith] and were not coercing the minority in order to promote an interest adverse to those of the class whom they represented,” the verdict issued by High Court Judge Susan Kwan Shuk-hing said.

“On the evidence before me, I am satisfied that the scheme is one as to which an intelligent and honest man … and acting in respect of his interests might reasonably approve,” Madam Justice Kwan said, in a written judgement. “I therefore exercise my discretion to sanction the scheme.”

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