Hong-Kong based investor Francis Leung has bought a controlling stake in the city's main fixed-line telecoms operator PCCW for $1.2bn (£650m).
PCCW was created in 2000 from the assets of Cable & Wireless HKT
He bought the 23% stake from chairman Richard Li, who had wanted to sell off PCCW's assets to foreign bidders.
State-run PCCW shareholder China Network Communications blocked a deal because it did not want Chinese telecoms networks in foreign hands.
Australian bank Macquarie and US firm Texas Pacific had shown interest.
The news that there would not be a bidding battle for the company's assets helped send PCCW shares down by as much as 9% on the Hong Kong Stock Exchange during Tuesday trading.
"The deal dashed hopes for a general offer, and investors are sidelined waiting for the future plans by the buyer," said Alex Tang, research director at Core Pacific-Yamaichi International.
China Network Communications welcomed the deal in a statement and said it would try to strengthen its ties with PCCW.
According to analysts such co-operation could help the company expand beyond Hong Kong's seven million-strong market.
PCCW said on Tuesday that it would carry on talking to Macquarie and Texas Pacific about selling some of its assets.
The company was created in 2000 when Mr Li's Pacific Century Group bought phone company Cable & Wireless HKT, the former Hong Kong Telephone Company.