Six years after PCCW sprung to life after acquiring Hong Kong Telecom (HKT) in an audacious takeover, the telco retains a unique ability to polarise opinion on the SAR's streets. This time, Hong Kong lawmakers are looking into possible irregularities in the sale of company founder Richard Li's stake in PCCW to former investment banker Francis Leung for HK$9.16 billion (US$1.2 billion).
Regulators are concerned that the sale may lead to cross-ownership, with monopoly implications for the telco sector. The sale itself is being viewed as a bid to prevent foreign investors gaining control of PCCW's core telecom and media assets, following bids by Australia's Macquarie Bank and US player Newbridge. At presstime, Li had yet to explain why those bids were turned down.
