PCCW scraps privatization after court stay

Hong Kong telecom company PCCW has abandoned, at least for now, its $2.2-billion privatization plan after it was blocked by the court on Wednesday.

The ruling by a Hong Kong appeals court was a setback for Richard Li, PCCW's chairman and largest shareholder, who was leading the buyout plan along with other major shareholders, and a boost for the city's securities watchdog, which had alleged vote-rigging in the deal.

Li yesterday said in a statement that he regretted how the whole process played out. In a separate statement, PCCW said it would pay a special dividend of HK$1.3 per share.