February 22, 2010
PCCW Highlights Corporate Voting Problems
Although minority shareholders were vocally opposed to the transaction, it succeeded at the ballot box. It's all still a little fizzy what was going on here. The Hong Kong police have since raided Mr. Li's home apparently and sealed up the ballot boxes. At this point, there is no indication that Mr. Li violated any laws. It's an odd situation. It's hard to imagine the police intervening in a US corporate election, but there you have it.Bloomberg reports that the company's offices were searched by police earlier this month, along with those of Fortis Insurance Co. (Asia), a local insurer that was once controlled by Li through his Pacific Century Regional Developments (PCRD).
Hong Kong's Securities and Futures Commission won a court ruling in April, 2009 to block Li’s bid after the regulator alleged that hundreds of people, including Fortis Asia agents, were given shares in the phone carrier to boost support for the deal.Li, the son of Hong Kong's richest man, Li Ka-shing and a billionaire in his own right with a fortune we estimate at $1.1 billion, has not been implicated in any wrongdoing.
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