July 18 -- Wuhan Commecial Union (Group), the largest shareholder of Wuhan Department Store Group (000501), intends to further increase its stake in the latter in order to consolidate its position as the biggest shareholder of one of Wuhan's big three department store operators, reports China Business News.

Wuhan Commercial Union and Zhejiang Intime Department Store, the second-largest shareholder of Wuhan Department Store, had been locked in a battle for control of the listed company for a number of years.

Zhejiang Intime Department Store had upped its stake in Wuhan Department Store several times in March this year, raising its shareholding to 24.48 percent.

Wuhan Comercial Union then acquired a five percent stake in the listed company in June, increasing its stake in Wuhan Department Store to 29.99 percent.

According to regulations, should Wuhan Commercial Union intend to further increase its stake in Wuhan Department Store, it has to make a tender offer for the listed company.

According to an insider, Wuhan Commercial Union had spent at least 500 million yuan to acquire the five percent stake in the listed company, and it may face funding problems should it continue to up its stake.

Wuhan Commercial Union may thus cooperate with investors to make a joint acquisition, and the most likely partner is Hongyi Investment, a subsidiary of Lenovo, said the insider.