SHK Convertibles, whose shares have been suspended since July 30, has launched an indirect attack on the Hong Kong stock exchange for the lapse of an agreement regarding the sale of a 34.99 per cent interest in the company to a third party. Company secretary Peter Lee Yip-wah said Hua Chiao Investments entered into a conditional agreement on July 30 to buy about 27.99 million shares at $2.10 each from its substantial shareholder, Yu Ming Investments, and to make a voluntary conditional offer for the remaining shares. The agreement will expire on November 30 and a notice of an extraordinary general meeting (EGM) had to be despatched by yesterday. Mr Lee said the exchange had expressed concerns since the first draft of the announcement was submitted on July 30 over the appointment of an investment manager and new directors under the agreement. The company was able to satisfy the concern over the appointment of an investment manager but found the requirement over the appointment of directors 'unreasonable and unacceptable'. The company requested a review of the matter. It was then notified by the exchange on Friday that it would uphold its earlier decision. The company said that by that time, it was too late to issue the EGM notice. The purchaser then confirmed on Monday it would not extend the expiry date. SHK Convertibles said if nobody approached it regarding a takeover, it would consider other methods to allow shareholders to realise more gains than from cash distribution or redemption.