HONG KONG, April 10 China Shanshui Cement Group
Ltd said its executives were attacked with pepper
spray, smoke bombs and water guns and then held for two hours by
associates of a former official when they tried to retake
control of company property.
According to the Securities Times newspaper, Shanshui Cement
executives organised a crowd of around 600 people, wearing red
arm bands, white gloves and wielding sticks and axes, to storm
and gain control of a company facility in the city of Jinan.
The abnormally hostile corporate battle is the latest
development in current management's dispute with former deputy
general manager Mi Jingtian. Accusing him of "suspected
misconduct", the company said in December it had suspended Mi
from his duties at unit Shandong Shanshui and all its
Shanshui Cement said in its filing on Monday it had
appointed legal advisers to take action against Mi and his
associates over what it described as an illegal occupation and
Mi could not be reached for comment. It was not known if he
has retained a lawyer.
Photos run by business website Sina.com showed smoke
billowing from a facility described as the Shanshui Cement
An employee at the affected Shanshui Cement facility who
answered the phone told Reuters there had been a confrontation.
The employee, who declined to identify himself, also said that
Mi had 'acted lawfully'.
Jinan police could not be reached for comment. Other contact
numbers for Shanshui Cement, either in Jinan or Hong Kong could
not be obtained.
Shares in Shanshui Cement have been suspended since April
2015 as its public float fell below the 25 percent minimum level
required after Tianrui Group raised its stake to become the
company's biggest shareholder. A Tianrui representative was not
immediately available for comment.
At the end of February, its unit Shandong Shanshui Cement
defaulted on a 1 billion yuan ($146 million) bond.
(Reporting by Donny Kwok and Umesh Desai in HONG KONG, Adam
Jourdan and SHANGHAI NEWSROOM; Writing by Anne Marie Roantree;
Editing by Edwina Gibbs)