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China's Baosteel, the world's fifth-most valuable steel maker, requested a share suspension Tuesday ahead of a "major announcement", which brokers say may be related to a huge planned share offer.
"Our board of directors convened Tuesday to discuss important corporate moves and major news will be announced Wednesday," Baoshan Iron and Steel Co. Ltd. said in a statement posted on the stock exchange Web site (www.sse.com.cn).
Baosteel gave no further information. Company executives were not immediately available for comment. Its shares are to be suspended for an hour Wednesday.
The market has been awaiting details since the firm first unveiled a plan in early August to issue up to 5 billion shares to buy factories and other assets from its parent, raising up to US$3.7 billion in what would be China's largest ever offering.
Details have not been announced.
Buying those assets -- initially estimated to be worth 28.02 billion yuan (US$3.4 billion) -- paves the way for an eventual merger of the listed unit with its parent Baosteel Corp., which could make it the world's most valuable steel maker.
Baosteel's parent is also aiming to invest 3 billion yuan in Construction Bank, the nation's top property lender, which could float shares by 2005 to raise up to US$10 billion, the largest ever fund-raising by a mainland firm.
Baosteel's yuan-denominated A shares, open to select foreign investors, closed up 3.3 percent at 6.58 yuan Monday, in line with the market's strong rally.
(Shenzhen Daily September 22, 2004)
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