Hong Kong’s financial markets regulator, the Securities and Futures Commission (SFC), has told a court reviewing the proposed takeover and delisting of telecom group PCCW, to disallow the deal.

Hong Kong’s financial markets regulator, the Securities and Futures Commission (SFC), has told a court reviewing the proposed takeover and delisting of telecom group PCCW, to disallow the deal.

Richard Li, PCCW’s chairman and largest shareholder, teamed up with PCCW’s second largest backer China Netcom (part of China Unicom) to offer HKD15.9 billion, or HKD4.5 per share for a total of 52 per cent stake in the cellular operator. The offer was supported by more than 75 per cent of stockholders in early February 2009. However, allegations surfaced that insurance agents were offered stock in return for supporting the proposal.