A vice-president of a securities and investment firm was yesterday arrested by the ICAC for allegedly soliciting $2 million for persuading a client to sell his shares in a listed company to facilitate its hostile takeover by an investment management compa ny.

The ICAC commenced investigation upon receiving a corruption report, alleging that a senior executive of the securities and investment firm had solicited an advantage from a director of an investment management company in connection with a proposed takeov er of a listed company.

The investment management company had earlier acted on behalf of another investment firm to make a voluntary conditional cash offer to acquire all the shares in the listed company.

ICAC enquiries revealed that the arrested vice-president had allegedly solicited $2 million from the director of the investment management company, or two to three per cent of its profit from the takeover bid.

The bribes were allegedly for the vice-president to persuade a client of the securities and investment firm to sell his shares in the listed company to the investment management company.

The proposed takeover did not materialize at the end.

The arrestee has been released on ICAC bail. Enquiries are continuing.