AFP, Shanghai :
China’s biggest property firm Vanke on Monday blamed a takeover it is trying to fight off for worsening business conditions, even as it reported higher profits.
Bosses of Vanke, China’s largest residential developer by sales, have for months been trying to stave off what would be the country’s first hostile blue-chip takeover, after private conglomerate Baoneng bought a stake of more than 20 percent, becoming its biggest shareholder.
Chairman Wang Shi and his executives currently own only around 0.2 percent of the 270 billion yuan (around $40 billion) firm. But they retain a tight grip on it by virtue of their positions, and have proposed a controversial asset swap deal with a state-owned subway operator that would heavily dilute existing shareholders.
Analysts say that takeovers are crucial to efficient markets and the allocation of resources.
China’s biggest property firm Vanke on Monday blamed a takeover it is trying to fight off for worsening business conditions, even as it reported higher profits.
Bosses of Vanke, China’s largest residential developer by sales, have for months been trying to stave off what would be the country’s first hostile blue-chip takeover, after private conglomerate Baoneng bought a stake of more than 20 percent, becoming its biggest shareholder.
Chairman Wang Shi and his executives currently own only around 0.2 percent of the 270 billion yuan (around $40 billion) firm. But they retain a tight grip on it by virtue of their positions, and have proposed a controversial asset swap deal with a state-owned subway operator that would heavily dilute existing shareholders.
Analysts say that takeovers are crucial to efficient markets and the allocation of resources.
