Hong Kong's MTR: time for a government buyout?

Scandals have battered the rail operator's once-pristine reputation. The city's government can show its determination to improve services and ease integrity concerns by removing it from the stock market.

In the world of merger arbitrage, some stocks are always on the watchlist. MTR Corporation is one of them.

The Hong Kong government has faced almost constant calls to buy back the 25% of the city’s mass transit railway operator that it sold in 1999.

And those voices have only grown louder in recent weeks after MTR found itself at the centre of a scandal around construction flaws on parts of the city's most expensive rail project.

For investors, this may present a fresh opportunity to build up a position in the stock in anticipation of a possible buyout.

...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222