Vanke Accuses Hostile Suitor of Improper Fund-Raising

(Beijing) – Leading Chinese home builder China Vanke Co. has accused a hostile suitor of improper fund raising to finance its bid for the company, in the latest twist of one of China's most contentious corporate takeover battles that has drawn attention to weak governance practices in the nation's young and often unruly corporate realm.

Vanke, the nation's largest residential property developer by sales, has demanded an investigation into nine structured funds that were used to buy its shares in the secondary market since last year by Shenzhen Jushenghua Co., a unit of hostile suitor Baoneng Group, Vanke said on July 19.