Indonesia's Indofood Sukses Makmur Tbk PT has considered to make a takeover bid for Singapore-listed China Minzhong Food Corp Ltd. This offer came after a short-seller attack reduced the Chinese firm's market value in half.

Minzhong saw its stock market value plunge to USD273 million following a 49-page report by Glaucus Research in California, of which cited accounting issues at the company as basis. The food producer's shares had been suspended since last week, but it has vehemently denied any irregularities.

Short-sellers are entities that sell securities or other financial instruments not currently owned, with the intention of subsequently repurchasing them at a lower price. In recent years, short-sellers have targeted Chinese companies listed in Hong Kong, Canada and the United States. This attack, however, was the first on a Singapore-listed Chinese firm.

Indofood, the biggest shareholder in Minzhong with a 29.3% stake, told the firm in a letter that it would make an announcement on Monday if an offer was to be made.