China's Focus Media receives takeover bid

Chinese advertising company Focus Media Holding has received a takeover bid from a group of private equity firms in what would be China’s largest leveraged buyout, Bloomberg reported. According to Shanghai-based Focus Media, it received a “non-binding” offer of US$27 per American depositary share, 15% more than the advertising company’s closing price on August 10th. “[The offer] is another example of how Chinese are taking more and more their companies private,” said Sachin Shah, an analyst at Tullett Prebon. The uncertainty of the US market in valuing Chinese firms is allowing these companies to bid for assets at a lower valuation, he said. The bidders for Focus Media include Washington-based Carlyle Group (CG.NASDAQ) and Chinese firms FountainVest Partners, Citic Capital Partners, CDH Investments and China Everbright (0165.HKG), Focus Media said.