Shanghai online games company Shanda Entertainment Ltd said it would sell part of its stake in Sina Corp to Citigroup, in a move that shows it has finally given up on attempts to acquire Sina and form China's biggest online firm.

The 3.7 million shares will net Shanda US$99 million and still leave it with about 6.1 million shares, or an 11.4 percent stake in the Internet media company, Shanda said in a statement.

"We will continue to sell the remaining shares in the future based on the market situation," said Zhuge Hui, Shanda's spokesperson.

It is said the move was wise because, despite many attempts, Shanda had failed to acquire Sina and might as well cash in on its stake while Sina's share price was high. Nasdaq-listed Sina's share price closed at US$27.90 yesterday, up 10 US cents on the day before.

Shanda bought a 19.5 percent stake in Sina in February last year in an attempt to merge and become the country's No. 1 online firm. But Shanda's plan failed after Sina launched a "poison pill" measure in which it put more shares on the market.

It is said Sina won't be influenced by the deal because investors know why Shanda sold the sales, as well as the company's strong performance in the third quarter.

Source:佚名