Michael Ying reduces Esprit stake below 5%

Former Esprit chairman Michael Ying last night sold HK$4.67 billion $602 million worth of shares in the Hong Kong-listed fashion retailer, reducing his stake below 5%. The sale, which was well received despite a sharp drop in US markets, was upsized from an initial deal size of about $384 million.

Ying, who founded Esprit more than 30 years ago, reduced his stake in the company six times between May 2003 and September 2006, but since he stepped down as chairman at the end of 2006, he has made no further sales. Consequently, the move could cause a negative reaction in the market as it may spark concern that insiders don't see potential for the...