Shares in Sun Hung Kai & Co jumped yesterday on renewed rumours that Lee Shau-kee of Henderson Land, together with the unrelated Sun Hung Kai Properties, were considering buying part of the brokerage group following Allied Properties' purchase of 33.18 per cent.
Shares in SHK & Co soared 12 per cent to close at $3.25. The stock was one of the day's most heavily traded with more than 140 million shares changing hands.
Speculation yesterday centred on a possible move by Mr Lee, who resigned as a director of SHK & Co earlier this week, to form a consortium with the controlling Kwok brothers of Sun Hung Kai Properties to buy SHK & Co's securities operation, SHK Investment Services.
Sources said one of the conditions of such a move would be that Allied Properties, part of Allied Group, rename the other assets within SHK & Co.
Soon after Allied Properties announced it would buy the stake for $743.6 million from the Fung family last month, a member of SHK & Co's management may have attempted a failed management buy-out backed by cash from Henderson.
The Securities & Futures Commission's move to allow Allied Properties' acquisition to proceed prompted a query from the government as to whether shareholding changes at registered dealers should prompt a 'fit and proper' test.