From Asia Times Online:
The Internet has changed everything around the world. Shanda Interactive Entertainment’s attempted hostile takeover of Internet portal Sina indicates that China hasn’t escaped this revolution. Sina’s roadblocks to the bid may prevent investors from discovering just how far those changes go.
On February 18, Shanda, China’s top Internet game operator, announced it had bought a 19.5% stake in Sina, China’s leading Internet portal. Both companies have listings on Nasdaq, and Shanda revealed its holding to comply with United States’s financial regulations. Shanda termed the stake a “strategic investment”, suggesting that it might be the first salvo in an unsolicited takeover. Sina shares shot up nearly 23% in two trading days after the announcement as investors anticipated an offer.
