AsisInfo (Nasdaq: ASIA) Surges Most Since August on Buyout Proposal From Government Fund

Palm Beach, FL 1/20/12 (StreetBeat) -- AsiaInfo-Linkage Inc. (Nasdaq: ASIA), a Chinese telecommunications software provider, surged the most in five months in the U.S. after receiving a buyout proposal from a state-owned private-equity fund at a premium to its stock price.

The Beijing-based company’s shares jumped as much as 26 percent to $12.49, the biggest intraday gain since Aug. 11. The stock was up 25 percent to $12.35 by 10:01 a.m. in New York.

AsiaInfo got a “non-binding” proposal from Power Joy (Cayman) Ltd., a unit of CITIC Capital China Partners II LP, to acquire all outstanding shares of the company in cash, according to a PRNewswire statement issued by AsiaInfo today.

The offer “represents a premium over the current stock price,” the statement said. AsiaInfo set up a special committee to consider the offer, and no decision has been made, the company said.

CITIC Capital is a private-equity fund owned by China’s biggest state-owned investment company and the nation’s sovereign wealth fund, according to its website.

Investors’ short-sale interest in AsiaInfo declined to 9.8 percent of its total outstanding shares as of yesterday, the lowest level since May 9, according to Data Explorers, a New York-based research firm. In a short sale, an investor borrows a security and sells it, expecting to profit from a decline by repurchasing it later at a lower price.

StreetBeat Disclaimer

Distributed by Viestly

Buffett on Asia

When Warren Buffett speaks, droves of individuals on Wall Street and Main Street listen. This week the world famous investor has been traveling across Asia, visiting nations including South Korea and India. During these visits he has done his fair share or talking, dominating headlines nearly every day with comments on a range of different issues.

At the start of the week, Buffett sparked attention when he announced that the natural disaster in Japan was not a death knell for the nation, but rather an attractive buying opportunity.

Investors appear to share the same view as the billionaire investor as indicated by the massive post-crisis popularity of the iShares MSCI Japan Index Fund. EWJ has surged dramatically in volume in recent days as investors attempt to position themselves for the nation's recovery.

Buffett was also queried on his views on the technology sector. In the past, the investor has been hesitant towards tech. Rather than purchasing companies such as Amazon, Apple or Google, he has opted for exposure to regions of the market such as industrials and consumer goods.

In an attempt clarify his reservations towards tech, he compared the long-term outlook for Apple to that of Coca-Cola. Buffett explained that, while he is able to predict what Coke will look like down the road, it is difficult to picture what Apple will look like in 10 years.

On top of these attention-grabbing comments, Buffett used his time abroad to seek out companies that will make good additions to the Berkshire Hathaway Empire.

Buffett's acquisition plans have and will likely continue to be a major factor to keep an eye on over the course of 2011. In recent years Berkshire Hathaway has built up a massive pile of cash and, as he explained in his annual letter to Berkshire shareholders, Buffett has been anxiously seeking out attractive and profitable opportunities to spend it.

Buffett has remained steadfast in his belief that the domestic economy will strengthen down the road. This, however, does not mean that he has limited his hunt to companies based within the borders of the U.S. On the contrary, while speaking in South Korea, Buffett pointed to the U.K. and South Korea as two potential regions of interest.

Berkshire Hathaway already boasts notable exposure to the South Korean market. According to The Wall Street Journal, Buffett's conglomerate owns a 4% stake in the Korean-based steelmaker Posco.

Given the size of Berkshire, any potential targets will have to be massive in order to impact his firm's performance. Therefore, it is not surprising that Buffett has his sights set on market giants. In commenting to the press, he explained that, when it comes to seeking out potential purchases, "the bigger, the better."

Interestingly, it has been only days since the investor last put his money to work. In mid- March, the investor purchased chemical maker Lubrizol in a deal valued at $9.7 billion. This marked Buffett's largest purchase since he acquired the remaining shares of Burlington Northern Santa Fe Railroad.

Buffett has made it clear that he is in a spending mood but where do you think Buffett will place his next bet? Feel free to leave a comment in the section below.

Distributed by IntelBuilder Social Media Platform