Richard Li is to take his battle to privatize PCCW to Hong Kong\'s highest court.
The decision follows the release yesterday by the Hong Kong Court of Appeal of the full details of its ruling last month to block the $2.1 billion buyout plan.
Spokespersons for Li\'s Singapore-listed company, Pacific Century Regional Developments (PCRD), and for PCCW said yesterday the company would apply to take the case to the Court of Final Appeal.
The court said in its 74-page written judgment there had been clear manipulation of the shareholder vote, citing evidence of phone calls between PCRD vice-chairman Francis Yuen, and Lam Hau-wah, a regional director of insurance firm Fortis.
Lam had bought 500,000 PCCW shares and distributed them among Fortis agents and friends, the court found. Lam had also obtained the voter proxy forms from Yuen\'s secretary.
In the decision, Mr Justice Rogers said there appeared no rationale for the privatization scheme and no explanation for why the company had suffered an "almost total loss of value" since Li had acquired the old Hongkong Telecom.
"Vote manipulation is nothing less than a form of dishonesty. The court cannot sanction dishonesty," he wrote.
The Hong Kong Securities and Futures Commission (SFC) hailed the decision as a "landmark" ruling for corporate regulation in the city.
SFC chief executive CEO Martin Wheatley said the decision ensured laws were "not abused by manipulative or artificial means and that the legitimate interests of shareholders are not overridden by disreputable practices."