Shares of Lai Sun Hotels (International) plunged yesterday on news the company had agreed to buy a 25 per cent stake in HKatv.com and had entered into a share-swap arrangement with Cheung Wah Development. Lai Sun Hotels also said that it intended to change its name to eSun.com Holdings. The counter dropped 46.56 per cent to $1.67 from its last trading price on Thursday. Lai Sun Hotels and its parent Lai Sun Development were suspended from trading last Friday. Trading resumed yesterday. Trading in Lai Sun Garment (International), the parent of Lai Sun Development, was also stopped. Lai Sun Hotels and Lai Sun Development announced late on Tuesday they had formed a 50-50 venture - Houseman International - to acquire 50 per cent of HKatv.com from ATV for $300 million. Lai Sun Hotels will pay $150 million in cash, and Lai Sun Development will issue 210 million new shares to ATV, a 5.6 per cent holding in the company. In a separate transaction announced late on Tuesday, Lai Sun Hotels said it had agreed to sell 101.34 million new shares - a 5.3 per cent holding - to Cheung Wah, the Hong-Kong listed vehicle of Japan-based Softbank, at $1.6545 each. Cheung Wah in turn will sell 13.51 million of its shares - a 0.71 per cent stake - to Lai Sun Hotels at a price of $12.41 each. Cheung Wah also has an option - valid for six months after the share swap - to subscribe to 101.34 million new Lai Sun Hotels shares. If this option is taken, Cheung Wah would increase its holding in Lai Sun Hotels to about 10 per cent. Despite yesterday's share-price fall, Lai Sun Hotels made a good move by diversifying into the high-technolgy sector, Prudential-Bache International analyst Raymond Ngai said. Lai Sun Development, which owns 52.06 per cent of Lai Sun Hotels, closed yesterday at 53 cents, down from 68 cents.