Monday, July 27, 2009


BANZAI7 NEWS--The provincial government of Jilin ordered Jianlong Group of China to abandon a buyout of state-owned Tonghua Iron & Steel Group after workers protesting job losses killed a manager, state-run Beijing News said Monday.

The instruction, announced via Jilin’s television network last night, also ordered Beijing-based Jianlong to never again take part in any restructuring plan of Tonghua, Bloomberg News reported. Closely held Jianlong had been Tonghua’s second-largest shareholder since 2005, Xinhua News Agency said separately.

Asked to comment on this Chinese style anti-takeover tactic, M&A doyen Martin Lipton said: "Simple, but effective nevertheless. I am not certain I would recommend it to my clients since it leaves the question of who signs off on legal fees somewhat hazy."

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