UPDATE 1-Big PCCW shareholders raise buyout offer to $2.2 bln

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HONG KONG, Dec 30 (Reuters) - Controlling shareholders of PCCW (0008.HK: Quote, Profile, Research) raised their takeover offer for the Hong Kong fixed-line phone company by 7.1 percent on Tuesday to HK$17 billion (US$2.2 billion) in a surprise attempt to win over angry minority investors.

David Ford, a non-executive director of PCCW, told a shareholder meeting that controlling shareholders PCRD (PCEN.SI: Quote, Profile, Research) and China Netcom had raised their buyout offer for the city's fixed-line operator to HK$4.50 per share from HK$4.20.

But analysts said the new offer was still not high enough to quell a minority shareholder revolt against the plan, and the company's sudden announcement of the new bid made some investors even angrier.

The shareholder meeting had been called to consider the original HK$15.94 billion ($2.06 billion) buyout offer made by PCRD and China Netcom in early November.

"The new price is not very attractive so most minority investors will reject this offer, too. If they really want minority shareholders to approve the deal they have to offer more than HK$5," said Patrick Shum, strategist with Karl Thomson Securities.

"I will vote against the (sweetened) offer," said one of the hundreds of shareholders who attended the meeting. "The enterprise value of PCCW should be worth HK$6, or at least above HK$5.50 in the current economic climate."

Investors have also been critical of a plan by PCRD and Netcom to pay themselves a total cash dividend of HK$16.96 billion to HK$17.56 billion after a deal is completed.

The new bid amounts to about HK$16 billion (US$2.05 billion) excluding options, and an estimated HK$17 billion (US$2.2 billion) including options. The previous offer of HK$15.94 billion included options.