HK Power Assets Holdings minorities urged to reject Li Ka-Shing bid

Tycoon Li Ka-shing controls Cheung Kong Infrastructure Holdings Ltd

HONG KONG: Influential proxy adviser Institutional Shareholder Services (ISS) has recommended investors in Hong Kong utility Power Assets Holdings Ltd (PAH) reject an $11.6 billion takeover offer from tycoon Li Ka-shing's main infrastructure firm, saying the deal undervalues the target.

Last month Li's Cheung Kong Infrastructure Holdings Ltd (CKI) raised the stock-swap ratio in a takeover first proposed in September by 2.5 percent after getting shareholder feedback. U.S.-based fund manager Capital International owns more than 7 percent of PAH - and nearly 8 percent in CKI - making it key to the deal's outcome.