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Freshfields fends off rare hostile bid for China client

Author: James Illman

Published: 12/10/2007 14:11

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Freshfields Bruckhaus Deringer has successfully defended Chinese steel market Oriental Group from an unsolicited HK$11.7bn (£740m) takeover bid by minority shareholder Smart Triumph.

Corporate partner Ng Kay Ian took the lead for the magic circle law firm, which fielded a team out of its Hong Kong office. The company is a long-term client of the City giant, which also advised on its initial public offering in 2004.

Rumours began circulating in February that Smart Triumph, the investment vehicle of Diana Chen, one of the richest women in China, was to launch a takeover bid for Oriental.

The bidder, which already owned 28% of the shares in Oriental, was advised by Herbert Smith for the original takeover but instructed Lovells when it issued court proceedings in the summer.

Ian said: “Hostile takeovers involve a lot of manoeuvring and strategic decisions and as they are not common in Hong Kong the work required a lot more innovation, with few market precedents.”

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