The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

PCCW takeover: Real deal is a steal

The saga of the PCCW takeover does little good for Hong Kong’s reputation as a financial centre.

The bluffing and counter-bluffing is over and the hands are revealed. No one should be surprised that Hong Kong banker Francis Leung’s US$5.2 billion purported bid for local telecom operator PCCW is in fact a careful orchestration of control for the utility by master conductor Li Ka-shing (KS Li) on behalf of mainland Chinese telecom carrier China Network Communications Group (China Netcom).

As predicted in these pages (see HK telecommunications carrier PCCW: Wrong connections, August 2006) Francis Leung has been fronting for Li senior in ensuring that three critical objectives are realized. The first is that Richard Li, KS Li’s youngest son, is extricated from his PCCW nightmare; second, that control of the company now rests with China Netcom; and third, that none of the parties involved with the carve-up was required to make an offer for all of the PCCW shares. It looks like mission accomplished on all three fronts.

To achieve this legerdemain, Leung and company have enlisted the help of Spanish telecom carrier Telefónica Internacional. In November, Leung revealed that his consortium to purchase the 22.65% stake in PCCW from parent Singapore-listed Pacific Century Regional Developments (PCRD) would comprise Telefónica purchasing 8% and two charities of Li Ka-shing purchasing a combined stake of 12%.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree