Hong Kong: USA bank, J.P. Morgan Chase, has cut its stake in China's Harbin Brewery Group Ltd, the target of a potential takeover battle between two of the world's top beer makers, records from Hong Kong's stock exchange showed. The U.S. bank sold 13.912 million shares in the Chinese brewer at HK$4.66-HK$4.84 apiece on May 7, trimming its stake to 8.02 % from 9.41 %, according to data posted on the stock exchange's Web site, Reuters revealed on May 12.

Shares in Harbin Brewery, China's fourth-largest beer maker, rose 1.6 % to HK$4.75 on May 12, having gained 47 % since SABMiller Plc launched a hostile US$553 million bid for the firm.

London-based SABMiller, which holds 29.4 % of Harbin Brewery, made its offer last week after larger rival Anheuser-Busch said it was buying a 29 percent stake in the Chinese brewer. Anheuser-Busch has yet to secure its investment given that the seller, an undisclosed group of investors, is still awaiting regulatory approval to buy the 29 percent stake in Harbin Brewery from Harbin's city's government.

It is unclear whether Anheuser-Busch will make a counter-bid, although the Chinese firm has said it favoured the U.S. giant as a long-term partner.

14 May, 2004