Fosun International, the Chinese conglomerate whose chairman was detained this month in connection with an unspecified investigation, announced it would withdraw its bid for BHF Kleinwort Benson, the London merchant bank.
Fosun, one of China’s most aggressively acquisitive private companies, said in a statement to the Hong Kong stock exchange on Sunday night that it was withdrawing its €5.10 per share takeover offer for the bank, made in July. Oddo & Cie, the French private bank, intervened late in November with an offer of €5.75 per share.
The four-day disappearance earlier this month of Guo Guangchang, Fosun chairman, has shaken overseas confidence in the company’s ability to provide access to the Chinese market. It is not clear whether Fosun will hold on to its 30 per cent stake in Kleinwort Benson or sell to Oddo. Fosun declined to comment.