PCCW deal hits another snag

The sale of a stake of Hong Kong's PCCW to a former investment banker may have hit a snag as regulators look into possible irregularities. PCCW chairman Richard Li Tzar-kai Li's sale of his 22.7% stake to Francis Leung Pak-to was announced after China Network Communications, which owns 20% of PCCW, objected to the potential sale of the company's media and telecoms assets to foreign investors, the South China Morning Post reported. Beijing is not keen to see telecommunications assets in foreign hands. Now legislators are concerned about parties acting in concert, about other connected deals and whether minority shareholders interests would be undermined in the new deal. Some legislators would also like to know whether any political pressure has been exerted, the newspaper reported.