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China Chipmaker’s Major Shareholder Said to Reject Rescue

  • Investor Jiankun penned letter criticizing JAC bid as too low
  • Troubled Unigroup’s rescue remains a national priority
A Huawei Technologies Co. chip.

A Huawei Technologies Co. chip.

Photographer: Qilai Shen/Bloomberg
Updated on

A major Tsinghua Unigroup Co. shareholder has pushed back against a prominent government-backed fund’s takeover bid, casting doubt on a deal portrayed as a bailout of one of China’s most important but debt-ridden semiconductor players.

Zhao Weiguo’s holding firm Jiankun, which owns 49% of Unigroup, sent a memo to domestic executives and creditors decrying a takeover bid led by JAC Capital as undervaluing his company, according to a copy of the letter seen by Bloomberg News and verified by people familiar with the matter.