GF Securities employees increased their bid for the country's seventh largest brokerage by purchasing another 8.4 percent stake. It was their latest move to block a counterbid by Citic Securities Co, the nation's biggest publicly traded securities firm.

Shenzhen Jifu Venture Capital Co, a unit set up by employees of GF Securities, agreed to pay 201.54 million yuan (US$24.28 million) for 167.95 million shares in GF Securities to Guangdong Meiyan Enterprise Co, a construction company listed on the Shanghai stock market, said Guangdong Meiyan in a statement yesterday.

The purchase, the latest move against what employees of GF Securities called a hostile takeover by Citic Securities, has increased Shenzhen Jifu's interest in GF Securities to 12.23 percent. Jifu is now the fourth largest shareholder of GF Securities.

"That makes it difficult for Citic Securities to push ahead with its offer to buy GF Securities. Now Citic needs to pay much more to gain major control of the company," said analyst Liang Jing with Guotai Jun'an Securities Co. "But I am still bullish on Citic. Even if the takeover bid fails, it will not have a big impact on Citic Securities given its business development prospects."

Shares in Citic rose 4.02 percent to 6.99 yuan yesterday. Shares of Guangdong Meiyan added 3.01 percent to 3.76 yuan. Citic Securities announced earlier this month to buy part of a stake in the Guangzhou-based GF Securities in an attempt to expand its nationwide network.

Employees of GF Securities started a counterbid last week, initially buying a 3.83 percent stake in the company on Friday through Shenzhen Jifu.

Source: Shanghai Daily News