Dalian port shelves Jinzhou acquisition

Dalian: Ruffled by alleged improper disclosure Dalian Port has given up its planned equity participation in Jinzhou Port.

A lawyer recently issued a call-up to minority shareholders, claiming that Dalian Port (PDA) Company Limited and Jinzhou Port Co, Ltd. are implicated in illegal information disclosure and insider trading in a planned acquisition process.

Listed-PDA shocked the market at the end of May by announcing plans to add a 5.3% shareholding in Jinzhou port, days after PDA had said it would not do anything which might cause unusual fluctuations of its stock price such as equity purchases or major asset restructuring.
The two incompatible announcements might bring punishment to PDA whereby it cannot raise financing for three years.

“Whether Dalian port has been involved in insider trading depends on the investigation of supervision departments, but the irregular information disclosure is obvious,” an insider told local media.  [19/06/12]

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