J.P. Morgan sells more of Harbin Brewery

Modern Brewery Age, May 24, 2004

J.P. Morgan Chase has started gradually selling shares in China's Harbin Brewery Group, the target of a potential takeover battle between Anheuser-Busch and SABMiller. The U.S. bank sold 5.98 million shares in the company for HK$4.54 each on May 10, reducing its stake to 7.42 percent from 8.02 percent. Shares in Harbin, China's fourth-largest brewer, have gained 50 percent in value since SABMiller launched a hostile US$553-million bid for the firm.

SABMiller, which holds 29.4 percent of Harbin, made its offer last week after A-B said it was buying a 29 percent stake in the brewer.

A-B has not yet secured its investment, since the seller, an unknown group of investors, is awaiting regulatory approval to buy the 29 percent stake from Harbin's city's government.