PCCW Ltd., Hong Kong's biggest phone company, will proceed with a shareholders' meeting tomorrow to vote on a buyout plan led by Chairman Richard Li after suspending its shares because of "speculative" reports.
"Our EGM will go ahead as planned tomorrow," spokeswoman Anita Choi said today, Bloomberg reported.
Some Hong Kong insurance agents were offered 1,000 shares in PCCW if they agreed to support a takeover plan for the phone company at a Feb. 4 shareholders' meeting, Ming Pao Daily reported on Jan. 31, citing former Hong Kong Exchanges & Clearing Ltd. director David Webb. Li and co-bidder China United Network Communications Group Co. are offering HK$15.93 billion ($2.05 billion) to take the carrier private.
The allegation won't prompt Glass, Lewis & Co. to review its recommendation on the buyout, Managing Director Warren Chen said in an e-mail today. The San Francisco-based proxy advisory firm last month recommended PCCW shareholders accept the offer.