Shares in Brilliance China Automotive Holdings surged 10.4 per cent yesterday following a Bermudan court decision to scrap an injunction that blocked the sale of the company's controlling stake to a Liaoning provincial government-owned firm. Shares closed at HK$1.91 with investors scrambling to buy in the belief the stake transfer would proceed as agreed and uncertainty over the company was gone. The injunction had been obtained by former Brilliance China chairman Yang Rong who was ousted from the company last June amid a bitter ownership dispute with the provincial government. Mr Yang had fled to the United States in May citing fears for his safety. The former chairman filed a lawsuit with the Bermudan court against Brilliance China last month in an attempt to regain what he claimed to be his holdings in the company. On December 19 last year, Brilliance China's former controlling shareholder, Chinese Financial Education Development Foundation, agreed to sell a 39.45 per cent stake in the minibus and saloon maker to Liaoning government-owned Huachen Automotive Group at a 93.1 per cent discount to that day's closing price. Last month, the Bermudan court issued an order to block the sale after Hong Kong-incorporated Broadsino Finance filed a writ alleging the foundation was holding the 39.45 per cent stake on trust for Broadsino, a company 70 per cent-owned by Mr Yang. Brilliance China has yet to have the writ struck out, as the Bermudan court will open a hearing to determine the ownership of the controlling stake. Broadsino is due to submit a statement of claim on February 19, but it has asked for more time to prepare. Brilliance China said yesterday it would take all possible steps to counter Broadsino's claim. Yesterday's share price rise is also believed to have been fuelled by the reassurance by German luxury carmaker BMW that its application to form a sedan joint venture with Brilliance China would not be affected by the ownership wrangle. Commenting on yesterday's rise, analysts said investors might have slightly over-reacted to the 'positive' news.