New | Battle over developer China Vanke takes dramatic turn as top insurer throws support behind beleaguered company management

In a dramatic twist in the fight to take over China Vanke, Anbang Insurance Group, a significant shareholder of mainland China’s largest home builder, said it will support chairman Wang Shi and his management team to run the company and fend off a hostile takeover by the Baoneng group of companies.

Anbang said in an announcement, issued by Vanke on Thursday, that it approved of Vanke’s existing corporate culture and operating style. The insurer, which was cited by mainland media as an ally of Baoneng in the takeover bid of Vanke, said it would support the existing management and its business strategy in property and property finance.

Vanke also said in a separate announcement that it welcomed Anbang, a well-known Chinese insurer which led the purchase of the iconic Waldorf Astoria hotel in New York, as a major shareholder.

Anbang Insurance Group increased its holdings of China Vanke’s A shares to more than 7 per cent before trading in the stock was suspended last Friday.

The support of Anbang brings the shareholding of Wang Shi’s alliance which includes China Resources Holdings, Wang Shi and his management team to about 30 per cent. It exceeds rival Baoneng’s 23.52 per cent holding.

In an earlier meeting with investment bank Credit Suisse on December 23, Wang said it had rejected overtures from Baoneng and its group due to different corporate cultures.

“Vanke management and I do not mind making compromise. What I value most is the corporate culture,” said Wang. He said the management has not enough money to block the bid. “We need all shareholders’ support. If you like out culture, you approve of our operating style, please support us,” Wang told investors.