Out-Law News

China Telecom investors told to ignore Merrill Lynch e-mail


China Telecom says Merrill Lynch, one of the three lead underwriters for its imminent flotation, sent unauthorised e-mail containing financial information to 53 US-based institutional investors, according to media reports quoting the telco’s listing prospectus.

Merrill Lynch has apparently asked all recipients of the e-mail to disregard the information and delete it from their computers.

According to China Telecom, the contents of the e-mail did not meet the US Securities and Exchange Commission guidelines and may have constituted an offer that breached US securities laws. China Telecom has disclaimed any responsibility for the distribution of the e-mails.

The company’s listing on the Hong Kong and New York bourses, scheduled for 7th November 2002, is expected to raise around US$3.6 billion.

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