As embarrassments go, this one must rank as one of the biggest, even for a government used to regular pillorying. The fate of the world's largest IPO of a property-investment vehicle, the Hong Kong Housing Authority's US$3 billion LINK REIT, hangs in the balance. Having already been forced into a delay due to a legal challenge, the government and its cohorts of advisers led by Goldman Sachs, HSBC, UBS and JPMorgan are now faced with the very real prospect of the IPO unravelling altogether if they are unable to resolve the legal obstacles. What makes the situation all the more risible is that this fiasco was caused by two elderly residents making a simple and valid legal challenge that was presumably, entirely foreseeable. One wonders what legal advice the government took ahead of the IPO, as the judge pointedly remarked in his judgment on the case.
December 01, 2004