PCRD says won't appeal PCCW buyout ruling

HONG KONG, Sept 16 (Reuters) - PCCW's (0008.HK) controlling stakeholder, Pacific Century Regional Developments (PCRD) (PCEN.SI), said it would not appeal a Hong Kong court ruling that blocked a $2.2 billion bid to privatise PCCW, bringing to an end a long-running and controversial privatisation saga.

Singapore-based PCRD said it was withdrawing its intended application for an appeal to the Court of Final Appeal, so it could get on with business without the distraction of more months of legal wrangling.

"The board continues to believe the case for appeal is strong, but the reality of many further months of distraction resulting from proceeding with an appeal needs to be measured against the desire to focus on other business opportunities," it said in a statement late on Tuesday.

In April, a Hong Kong court blocked a proposal from PCRD and another PCCW shareholder, China Netcom [CNCOM.UL], to buy out other stockholders of PCCW, Hong Kong's dominant fixed-line firm. [ID:nHKG148241]

Hong Kong-based tycoon Richard Li, younger son of Hong Kong's richest businessman Li Ka-shing, was rebuked by a judge for a "clearly manipulated" shareholder vote approving the attempted buyout of PCCW. Li controls both PCCW and PCRD.

In a 74-page ruling outlining reasons for its decision to block the transaction, a Hong Kong court said PCCW minority shareholders had not been treated fairly in the buyout.

PCCW shares ended at HK$2.01 on Tuesday, well below the offered buyout price of HK$4.20 that Li made late last year. (Reporting by Alison Leung; Editing by Jonathan Hopfner & Ian Geoghegan))