One legislator sees the partial concession on the change of ownership threshold as a compromise 'in technicalities' only
Leading telecommunications operators have won over regulators by forcing a major change in a new law governing industry mergers.
In a surprise move, the Commerce, Industry and Technology Bureau (CITB) yesterday relaxed the proposed change of ownership threshold for pre-approving telecommunications share transactions for new investors from 15 per cent to 30 per cent.
However, the threshold in the draft law on industry mergers and acquisitions - part of the 2002 Telecommunications (Amendment) Bills - will be kept at 15 per cent for existing operators.
The concession from the CITB, a government policy-setting unit, represents a U-turn on its stance of the past 18 months and is seen as a compromise in exchange for industry support for the bills.
It followed last-minute lobbying from a consortium of eight operators, led by Hutchison Whampoa's two telecommunications subsidiaries - Hutchison Telecom and Hutchison Global Communications - PCCW and CSL. Representatives of the consortium and government officials reached an agreement at a meeting on Wednesday.