Minority shareholders of Pacific Century Regional Developments (PCRD) will vote on a proposal to sell the firm's 23 per cent stake in PCCW on November 30.

Singapore-listed PCRD issued a statement yesterday saying a meeting had been called to decide whether the company would sell its stake in Hong Kong's fixed-line giant to a consortium led by financier Francis Leung.

The Singapore Stock Exchange has barred PCCW Chairman Richard Li, who controls 75 per cent of PCRD, from voting. So only 25 per cent public shareholders will decide the future of PCCW's holding pattern, and the outcome of the vote is uncertain.

On Sunday, Spanish telecom services provider Telefonica and tycoon Li Ka-shing, Richard Li's father, joined Leung's consortium. The second-largest phone company of Europe has agreed to take 8 per cent stake in PCCW, with a charity run by Li (Sr) taking up 12 per cent.

Telefonica has entered into an agreement with China Netcom to increase its stake in the latter from 5 per cent to 9.9 per cent. And Leung has agreed to Telefonica's right to swap its shares in PCCW for a stake in China Netcom on the basis of the reigning market price.

Leung has said he would sell 8 per cent of PCCW's shares to a Telefonica-China Netcom joint venture, which ultimately will control 28 per cent of the Hong Kong company because the mainland firm already holds 20 per cent of its shares. The joint venture will thus become its biggest shareholder.

Leung has also said that the Spanish company might get a 10 per cent discount on the PCCW shares it's supposed to buy, "depending on the performance of PCCW's shares... within 10 months after payment has been made by Telefonica".

Leung's consortium includes two charitable trusts of Li (Sr) that will buy 12 per cent stakes in PCCW for HK$4.8 billion.

PCCW shares slipped HK$0.01, or 0.2 per cent, to close at HK$5.06 yesterday. Shares of China Netcom eased at HK$15.8, increasing by HK$0.16, or 1.02 per cent.