Shenyang soars; Jana fund said to buy stake
By V. Phani Kumar
HONG KONG (MarketWatch) — Shares in Shenyang Machine Tool (Group) Co. rose to their daily limit of 9.99% on the Shenzhen Stock Exchange in China Wednesday on reports that the New York hedge fund Jana Partners LLC purchased a 30% stake in the Chinese machine-tool maker.
The Wall Street Journal’s online edition reported that Jana has agreed to pay 1.01 billion yuan, or about $132 million, for the equity stake in Shenyang Machine, adding that the deal could spur more aggressive moves by U.S. hedge funds in China.
“This company has ambitions to make acquisitions globally, and we want to help with that,” said Marc Lehmann of Jana Partners, according to the report.
In Shenzhen, Shenyang’s shares opened at 26.98 yuan ($3.54), up 9.99% from Tuesday’s close, and stayed there through the afternoon, on the news.
Copyright Fund China 2009.
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