PCCW shares fall in Hong Kong on police probe reports

HONG KONG: PCCW Ltd shares fell in Hong Kong trading after people familiar with the matter said police began probing Chairman Richard Li's failed bid last year to buy out the city's biggest phone company.

PCCW declined 1.9 percent to HK$2.09 in early trade yesterday, the worst performer on the 201-member Hang Seng Composite Index, which climbed 2.2 percent. The benchmark Hang Seng Index gained 2.4 percent. PCCW closed at HK$2.12 yesterday.

Offices of at least one of Li's companies were searched on Feb 10, the people said. Police also searched the offices of Fortis Insurance Co (Asia), a Hong Kong insurer formerly controlled by Li's Pacific Century Regional Developments Ltd (PCRD), the people said. "It would be inappropriate to comment on this matter," PCCW said yesterday. It didn't say if its offices were visited by police.