This corporate people power now threatens to derail a HK$16bn (US$2bn) buy-out of PCCW, the Hong Kong telecommunications company controlled by Richard Li. PCCW's core asset is the network inherited through its acquisition of Hongkong Telecom nine years ago.
On Wednesday, 1,403 shareholders in PCCW voted for – and 854 against – Mr Li's proposed takeover of his company. With 62 per cent in favour of the HK$4.50 per share offer from Pacific Century Regional Developments, Mr Li's Singapore-listed holding company, and China Unicom, PCCW's second largest shareholder, the buyout offer passed comfortably.
According to a “majority of holders” requirement in Hong Kong's Companies Ordinance, at least 50 per cent of voting shareholders must approve such deals, giving retail investors who may own just a handful of shares the same weight as funds that control tens of millions of shares.