GOME says unaware of share sale; stock down 4 pct

HONG KONG Aug 16 (Reuters) - Chinese home appliance chain operator GOME Electrical Appliances (0493.HK) said on Monday it was not aware of any basis for speculation on a share sale by the company that has led to recent stock price fluctuation.

In a filing with the Hong Kong bourse, GOME said it had noted media reports speculating that it is intending to conduct a share placement, and recent unusual movements of its stock price, adding the company was "not aware of any reasons for such speculation and price movements."

It gave no further details.

Shares of GOME fell 3.9 percent by the midday break on Monday, compared with a 0.22 percent gain in the blue chip Hang Seng Index .HSI.

Mainland media reported on Monday that GOME was planning an issue of new shares in a bid to dilute major shareholder and former Chairman Wong Kwong Yu's holdings in the company in order to increase its voting power. [ID:nCN1258451]

GOME had said earlier this month that it was taking legal action against Wong, also known as Huang Guangyu in China, to seek compensation for his alleged breach of fiduciary duties. [ID:nTOE674069] (US$1=HK$7.77) (Reporting by Donny Kwok; Editing by Ken Wills)