Shanghai Xinhua Media Co. (stock code: 600825) said on Wednesday that it has no plans in the next six months to buy into Dangdang.com, a Chinese online bookstore that is reportedly planning a Nasdaq listing.
On Monday, two sources close to the situation told Reuters that Xinhua Media was in early talks to buy into Dangdang.com, partly held by a group of global investors, including Doll Capital, Walden International and IDG Ventures.
"So far, the company has not declared to Dangdang.com any intention of acquiring it," Xinhua Media said in a filing to the Shanghai stock exchange.
"The company's board has no intention, plan or arrangement to acquire an equity stake in Dangdang.com within the next six months," it said.
"The management of the company has not held talks with Doll Capital, Walden International and IDG Ventures on the purchase of a stake in Dangdang.com," Xinhua Media, which has no relation to China's official Xinhua News Agency, added.
The sources told Reuters on Monday that Xinhua Media, which is controlled by state-owned Jiefang Daily Press Group and is one of China's biggest newspaper publishers, hopes to team up with Beijing-based Dangdang.com to tap the domestic online book market.
They also said that Xinhua Media, which dominates distribution channels for books and magazines in Shanghai, approached the online bookstore about a month ago.
The sources have also said that there were many uncertainties, such as industry rules and pricing, that must be addressed before Xinhua Media and Dangdang.com can reach a deal. Xinhua Media has not yet hired an investment bank or accountant to conduct due diligence.
Shanghai-listed shares of Xinhua Media were up 2.75 percent by 0537 GMT on Wednesday amid a broad rally in the domestic A-share market. The stock was suspended from trading on Tuesday pending a statement clarifying media reports about its interest in Dangdang.com.
Dangdang.com at one time was in talks to sell a controlling stake to U.S. Internet retailing giant Amazon.com Inc.. But the two sides failed to agree on a price and Amazon ultimately ended up buying China's Joyo.com for $75 million in 2004, Chinese media reported last year.
Dangdang.com plans to list on the Nasdaq market eventually, according to previous media reports.
Xinhua Media went public on the domestic A-share market through a back-door listing earlier this year.