PCCW, Hong Kong's biggest telecommunications firm, has confirmed its biggest shareholders are in talks to take the company private.
Pacific Century Regional Developments, PCCW's largest shareholder and controlled by PCCW chairman Richard Li Tzar-kai, was 'considering the feasibility of a proposal for the privatisation of the company', a PCCW statement said last night.
China Netcom Group Corp was also involved in the talks over a joint proposal, PCCW said.
Singapore-listed PCRD owns 22.54 per cent of PCCW while Netcom, which has merged with China Unicom, owns 19.84 per cent. HSBC is advising PCRD.
Sources said two weeks ago that Mr Li, who also directly owns a small stake in PCCW, and Netcom planned to take advantage of PCCW's low share price to privatise the company.
However, earlier this week, sources said the proposal had hit a snag over pricing. Some minority shareholders have said they will accept not less than HK$5 per share, the level at which the shares have traded over the past year.
