HONG
KONG, May 19 (Reuters) - U.S. Internet giant Yahoo! Inc (YHOO.O) and
Founder Holdings (0418.HK) plan to take over Management Investment &
Technology (Holdings) Ltd (MIT) to gain a back-door listing for their
China joint ventures, local newspapers reported on Friday.
Quoting
unidentified sources, the South China Morning Post and the Hong Kong
Economic Journal reported that Yahoo and red chip software group Founder
would inject their China Internet portal related businesses into the
company, including Yahoo! China.
The
Post said Yahoo! would take a controlling stake in MIT, a maker of
consumer and industrial electronic products, while Founder would hold a
20 percent stake.
A
spokeswoman for Founder declined to comment on the reports, but said the
company would make an announcement "later", without specifying
a time. Officials at Yahoo! in Hong Kong was not immediately available
for comment.
Founder,
which was added on Thursday to Morgan Stanley Capital International's
China Free Index, was suspended on Thursday pending an announcement on a
conditional disposal of business, according to the Stock Exchange of
Hong Kong.
The
shares closed at HK$5.20 on Wednesday.
MIT
shares have been suspended since May 4, pending a statement on possible
acquisition and disposal of assets. The stock exchange said at the time
that the announcement might involve an acquisition of a business by the
company in consideration for the issue of new shares and may involve hte
disposal of certain existing businesses and assets.
Founder
and Yahoo! in September 1999 announced a broad joint venture to set up
Yahoo! China and other ventures, including an Internet services company.
But the status of the ventures have been clouded by Beijing's lack of
clear guidelines on foreign investment in the mainland's Internet
sector.
