REGULATORS are looking into a high-profile takeover battle over China Vanke, the world’s largest property developer by sales, a spokesman for the country’s securities regulator said.

    Zhang Xiaojun, the China Securities Regulatory Commission spokesman, said Friday that the securities regulator was studying Baoneng Group’s acquisition of a major stake in China Vanke with other financial regulators to see if any rules were violated.

    It is the first time the securities regulator has said it is looking into the deal, which has triggered a high-profile battle between Vanke chairman Wang Shi and Baoneng.

    Vanke issued a statement on the Shenzhen Stock Exchange late Friday, saying that it hoped the management would not change the company’s operating style.

    “The management hopes the company’s culture, branding and credibility will be kept intact. These are the company’s most precious assets,” Vanke said.

    Baoneng, a property and insurance conglomerate, became Vanke’s biggest shareholder earlier this month after buying a stake of more than 20 percent in Vanke via unit Shenzhen Jushenghua Co. and affiliate Foresea Life Insurance.

    As of Dec. 18, Jushenghua had increased its holdings in Vanke to 24.26 percent.

    Wang has attacked Baoneng, saying it lacked credibility and would damage Vanke. Baoneng said it had a “good reputation” and strictly abided by the law.

    Vanke said last week that it will announce no later than Jan. 18 a restructuring plan that could involve issuing new shares. That could dilute a bidder’s interest in the company and increase the cost of a bid substantially, which analysts see as a poison pill strategy designed to thwart any takeover attempt by Baoneng.

    Zhang told a news conference Friday that the securities regulator was studying the case with banking and insurance regulators and reiterated that it would not interfere if no rules were broken.

    Shares of Vanke have been suspended pending an announcement of a major restructuring.

    Zhang added that all parties involved in the acquisition of stakes in listed companies should make adequate disclosures and that decisions made by the board of a company following such acquisitions “should be in the interest of the company and its shareholders.” He did not elaborate.

    (SD-Agencies)