| Hong Kong tycoon Li Ka-shing to buy 12% stake in phone operator from son |
HONG KONG, Nov 10 (AP) -- Hong Kong billionaire Li Ka-shing and Spain's Telefonica SA are part of a consortium led by financier Francis Leung that plans to buy Li's son's 23 percent stake in phone operator PCCW, Dow Jones Newswires reported Friday, citing people close to the situation.
Li plans to buy 12 percent of PCCW Ltd., while Telefonica plans to buy 8 percent, the report said.
In July, investors led by Leung announced plans to buy a 23 percent stake in the phone company from Li's younger son, Richard. He did not reveal his backers at the time.
A spokeswoman for Li Ka-shing didn't immediately respond to a call seeking comment. Telefonica couldn't immediately be reached for comment.
Speaking to reporters Thursday, Richard Li declined to say whether his father was involved in the deal or identify any other buyers.
Telefonica owns 5 percent of China Netcom Group Corp., whose parent state-run China Network Communications Corp. in turn owns 20 percent of PCCW.
PCCW has been the subject of much investor interest this year.
In June, two foreign investors -- Macquarie Bank Ltd. of Australia and U.S. investment company Texas Pacific Group -- were competing to buy PCCW's phone and media assets for about US$7 billion.
But Richard Li faced staunch resistance from China Netcom, amid Beijing's worries that the Hong Kong cable firm would fall into foreign hands, and eventually had to abandon the deal.
Instead, he agreed to sell his 23 percent interest in PCCW for HK$9.16 billion (US$1.2 billion; €915 million) to Francis Leung, his father's financier for decades.
Speculation pointed to Li Ka-shing as Leung's backer in the deal, but Leung said at the time he would disclose his financial supporters at the end of November.
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