Bright World Precision down 16.4% at $0.435 on above-average volume, extending recent weakness as investors increasingly worried US-listed China Holdings Acquisition's takeover deal will fail. Latter unveiled $0.70/share offer for stamping machine, metal component maker last week, sending stock to 9-month high of $0.665. But shares down almost 22% since deal announced Jul 22.
"Judging by the share price pattern over the past week, it appears that some investors may not be confident that the deal will go through given the numerous hurdles," says Kim Eng.
Among conditions, Bright World's quarterly, full-year net profits for periods ending Jun, Sep, Dec '08 can't fall by more than 10% on-year; also, not more than one-third of buyer's public shareholders can redeem their IPO shares for cash.
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