HONG KONG: Bossini International Holdings, a Hong Kong retailer that sells inexpensive casual clothing in Asia, surged almost 40 percent yesterday, after reports about a possible change in control of the company.

Outperforming the 1.84 percent jump in the benchmark Hang Seng Index yesterday, shares in Bossini rose 39.44 percent, or HK$0.14, to close at HK$0.495. Rival Giordano International Holdings also finished up, posting a gain of 12.05 percent, or HK$0.27, at HK$2.51.

Market sources have been saying that Bossini's chairman and controlling shareholder Law Ka-sing, who holds around 68.58 percent of the company's shares, is currently in talks to sell his stake to a potential investor.

If the stake sale takes place, it will trigger a mandatory takeover offer under Hong Kong stock exchange rules.

"The change in stake has yet to be confirmed. We don't have an exact timeline for accomplishing an agreement so far," a Bossini's spokeswoman told China Daily yesterday.

Law Ka-sing is one of the sons of Bossini's late founder. He joined the company in 1991, four years after it opened its first retail store in Hong Kong.

Analysts said shares in Bossini may retreat in the near term, as the stock has posted large gains in recent days.

(HK Edition 07/29/2009 page4)