Chinese firms become foreign takeover targets

China’s information technology sector is becoming increasingly attractive to investors from developed nations, with Temasek taking a stake in video firm Tudou and Apple eyeing games developer Handseeing.
 
Temasek Holdings, the investment arm of the Singapore government, last week made its first foray into the Chinese technology sector, tipping $35 million (€26 million) into online video company Tudou.
 
The investment comprised the bulk of a recent round of equity funding that raised $50 million in total, according to FT.com.
 
Tudou CEO Gary Wang said it would use the investment to bolster its bandwidth and develop its presence on tablets, citing Apple’s iPad - due in China within the next three to six months - as the growth engine for demand in online video.
 
Meanwhile, Tian Bo, deputy general manager of Handseeing Information Technology, confirmed on Friday it is discussing a buy-out by Apple Chinese news agency Xinhua reported.
 
Bo said Apple was one of several companies interested in Handseeing, and that a decision on the deal would be taken by September.
 
Reports say Apple could spend up to $150 million on what would be its first Chinese acquisition, Xinhua said.