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Wanda Wavers, Qihoo Hits Currency Snag

Bottom line: Qihoo's privatization from New York is likely to move ahead after it resolves a temporary impasse with the foreign exchange regulator, while Wanda's privatization is also likely to proceed on its belief that it can make a quick backdoor re-listing in China.

New ripples are spilling through the realm of Chinese companies seeking to return to China after getting lukewarm receptions with offshore listings, reflecting the complexity and difficulty of such deals. Two of the largest such deals are in the headlines as we round out the week, led by word that a privatization plan by software security specialist Qihoo 360 (NYSE:QIHU) may be running into trouble due to China's strict foreign exchange controls. The other major deal has real estate giant Dalian Wanda (OTC:DWNDF, HKEx: 3699), reportedly moving ahead with a plan to privatize the company, after indicating earlier this week that it might abandon its original plan.

It's becoming quite a challenge to write about this so-called "homecoming trend" by Chinese firms these past 2 weeks, since new obstacles seem to be popping up almost daily on this road back to China. The process was never an easy one, and involves raising hundreds of millions, or sometimes even billions, of dollars to take a company private. Then the buyout groups, usually led by company managers, must convince New York or Hong Kong shareholders to sell their stock, often at modest...