The Securities & Futures Commission has published a statement explaining the Takeovers Executive's ruling on whether certain parties were acting in concert over the proposed sale of PCCW shares.

The commission's Executive Director of Corporate Finance Brian Ho said takeover rulings often involve a consideration of complex relationships between parties to a transaction and it may be difficult for the public to appreciate the intense level of enquiry that is undertaken before decisions are made. He hoped the statement will help clarify the basis and underlying reasoning for the ruling in this high profile and complex case.

On November 10, the Takeovers Executive ruled there was insufficient evidence to conclude that Francis Leung, Li Ka-shing, the HK Foundation, the Canada Foundation, the China Network Communications Group Corporation, Telefonica and Pacific Century Regional Developments were parties acting in concert.

In the statement, the commission said the Takeovers Executive made rigorous enquiries with each party to the proposed transaction. For details click here.