No reservation at Macau hotel for Fortuna

Fortuna International Holdings' plans to check into the Macau hotel market were thrown into confusion yesterday when the owner of its acquisition target, the New Grand Hotel, said it was unaware of any agreement with the main board-listed company.

The case of the mystery hotel investment has attracted the attention of the Hong Kong stock exchange, which yesterday ordered that trading in Fortuna's shares be halted pending a clarification from the company.

The wine producer and distributor said on February 15 that it had entered into a conditional agreement to pay $50 million for a 30 per cent stake in a firm, Target, that it said had the rights to operate New Grand Hotel until April 2, 2010.

Over the weekend, however, Macanese media reported that Fok Kin-man, speaking on behalf of the New Grand Hotel's unidentified owner, denied any knowledge of the deal and demanded that Fortuna clarified its intentions.

The New Grand Hotel, built in 1941 and located in Macau's central shopping district, suspended operations four years ago and is now being renovated. Fortuna's management could not be contacted.

According to Fortuna's announcement last week, it intends to buy the stake from Target's controlling shareholder, Lam Po-ying.