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(China Daily)
Updated: 2007-12-04 14:37

Chinese truck maker Beiqi Foton Motor Co said it has scrapped a share placement plan signed last year with DaimlerChrysler, which would have paid 817 million yuan for a 24 percent stake.

Foton had agreed in November 2006 to sell 297 million new A shares to DaimlerChrysler, which has since sold a majority stake in its Chrysler unit, at 2.75 yuan per share.

But Foton's shares traded in Shanghai rose sharply thereafter, and the proposed stake sale failed to win the approval of the government, Foton said.