Concerns expressed over investor's move

Sunshine Insurance increases holding in Yili, leading to hostile takeover speculation

Dairy industry association authorities said on Thursday that they are not willing to see the interference of "unfavorable factors" in the development of the dairy industry, or investors using dairy enterprises as vehicles for capital operation.

They expressed their concern after Inner Mongolia Yili Industry Group Co, China's largest dairy products supplier, announced that Sunshine Property Insurance Co and Sunshine Life Insurance Co (both arms of Sunshine Insurance Group), had increased their combined equity interest in Yili from 4.9 percent to 5 percent this month, a level that triggers debate over whether the move is just an investment or signals a potential hostile takeover bid.