Power Assets shareholders reject Li Ka-shing's $12.4b offer

Cheung Kong Infrastructure deal seen as undervaluing diverse conglomerate

Billionaire Li Ka-shing's Power Assets Holdings Ltd and Cheung Kong Infrastructure Holdings Ltd fell on Wednesday in Hong Kong trading after shareholders rejected a $12.4 billion deal from the city's richest man.

On Tuesday, minority shareholders blocked a proposal for CKI to buy out Power Assets, dealing a rare setback for a tycoon who is so revered in Hong Kong for his business acumen that he is known as "Superman". The proposal's collapse prompted analysts at Daiwa Securities Group Inc and UBS Group AG to cut their investment ratings on Power Assets.