Plan to combine power, gas units sparks sell-off

Investors gave a harsh verdict on state-owned China Resources' proposed merger of its gas and power subsidiaries, selling down shares in both companies yesterday, as one analyst suggested the move would not get the necessary shareholder approval.

Market scepticism centres on the increased debt burden for limited business gains, the valuations of the entities and an apparent lack of synergies.

via Business feed http://www.scmp.com/business/companies/article/1234964/plan-combine-power-gas-units-sparks-sell