CITIC Securities' plans to buy Guangfa (GF) Securities encountered a major setback with a joint move by two of GF's major shareholders to seize control of the securities house. Textile trading company Liaoning Chengda and Jilin Aodong Medicine Industry Group simultaneously announced plans Tuesday to increase their stake in GF to 27.3% and 27.14% respectively, the China Daily reported. That would give the two companies 54.44% of GF which, in addition to a 12.23% stake held by Shenzhen Jifu, a venture company formed by GF employees, makes CITIC's plan to gain control of GF unlikely to succeed, the paper quoted analysts as saying.
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