reuters/test/14911

JARDINE MATHESON REPLACES "B" SHARE BY BONUS ISSUE
  Jardine Matheson Holdings Ltd
  <JARD.HK> said it will withdraw the previously announced
  four-for-one bonus issue of "B" shares and replace it by a
  two-for-five bonus issue of ordinary shares.
      A statement said the firm expects to pay total dividends
  for 1987 of not less than 40 cents a share on the expanded
  capital.
      Jardine Matheson decided to withdraw its issue because of a
  joint announcement earlier today by Ronald Li, chairman of the
  Stock Exchange of Hong Kong, and Securities Commissioner Ray
  Astin, that the listings of new "B" shares would be barred.
      The official announcement said this will include the
  proposal by Jardine Matheson.
      But the Jardine statement quoted chairman Simon Keswick as
  saying: "We continue to believe that the issuing of "B" shares
  would benefit shareholders, and regret that they will not be
  given the opportunity to vote on the matter at this stage."
      Keswick said the "B" share issue will benefit Jardine
  Matheson's shareholders by giving the firm flexibility to issue
  ordinary shares for expansion in future without diluting
  existing shareholders' voting rights.
      However, he added: "We certainly welcome (the Secretary for
  Monetary Affairs) David Nendick's referral of this very
  important matter to the Standing Committee on Company Law
  Reform and are hopeful that the process will lead to the
  development of general principles which can be embraced by all
  constituents of the Hong Kong market."