Corporate Takeover, China Style

Caixin: Intensifying Battle over Who Controls Vanke
Two companies battling for control of the nation's leading homebuilder China Vanke Co. have teamed up to fight a controversial asset restructuring plan through which a Shenzhen government-owned company would become Vanke's largest shareholder.

Through two subsidiaries, developer Baoneng Group announced June 23 that it firmly opposes a proposed deal that would make Shenzhen Metro Group Co. the leading Vanke shareholder.

Currently, Baoneng is indirectly Vanke's largest shareholder, as its subsidiaries Shenzhen Jushenghua Co. and Foresea Life Insurance Co. control a combined 24.29 percent.

Shenzhen Metro wants to take the helm through a deal that would see Vanke issue 45.6 billion yuan worth of new company shares to buy its subsidiary Qianhai International.

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