The Chinese conglomerate, recently the subject of controversy over an investigation involving its chairman, has pulled out of a bid for the venerable merchant banking firm.

Fosun International, the Chinese group whose chairman was detained earlier in December over an official investigation, has pulled out of its bid to acquire BHF Kleinwort Benson because a French rival suitor put in a higher offer.

The Asian group announced it intended to launch a bid in July this year (for more on that story, see here). 

Billion Eastgate, which is an indirect wholly-owned subsidiary of Fosun, had told Belgian regulators it had offered to pay €5.1 per target share for BHF Kleinwort Benson. On 27 November, however, Oddo & Cie, a Paris-based firm, made a cash bid for all shares that it did not yet own, offering a price of €5.75 per share.

“The company has decided to withdraw the original bid,” Fosun said. It told Belgian authorities it was pulling its offer on 18 December. 

Fosun International has made a name for itself in recent months as an acquirer – or suitor – for European wealth management and banking operations, as well as in developing its own businesses. Fosun has agreed to buy Hauck & Aufhäuser, the venerable German private banking and financial firm. In October, Fosun said it launched a financial platform for its investment and asset management business in Russia and neighbouring countries. Called Fosun Eurasia Capital, the platform was co-founded by Fosun and its local partners in Russia, Tanya Landwehr and Igor Danilenko.

Drama unfolded this month when the chairman and founder of Fosun was quizzed by police over an investigation mostly around his personal affairs. Late last week, media reports said Guo Guangchang had gone missing, prompting speculation as to his whereabouts. He resurfaced after more than a day, with the firm saying he was assisting authorities with an investigation.