An insider at the Hong Kong-based food and beverage company, COFCO International Ltd., has said the company is looking to acquire a wines and spirits company on the Chinese mainland from a third party, not from its parent company as some reports had suggested.

Fund managers who attended a meeting at COFCO were told that the company was planning to spend Y700m ($84.54m) to buy a majority participation in a wine and spirits company in China.

However, the COFCO official has reportedly denied the suggestion in the local press that the company is planning to buy COFCO Shaoxing Rice Wine Co. from its mainland parent company for HK$700m.