Saturday, January 20, 2007

Eon Capital

Saw this article published on Star Bizweek.

Foreign suitor for EON Cap
US’ GE unit is said to have started negotiations to take over EON capital

It is believed that a financial group under US-based General Electric Co banner has initiated talks with the controlling shareholder of DRB Hicom, Tan Sri Syed Mokhtar Albukhary, to acquire the group’s 20.2% equity the conglomerate holds in EON Capital.
General Electric has a wholly-owned unit General Electric Capital Services Inc, which is involved in the financial services and insurance business, and under this umbrella there are several other companies which could initiate negotiations.
It is further understood that the price being bandied could be in the region of RM9 per share for the 140-odd million shares, which are owned by DRB-Hicom.
The offer price represents a stark premium to EON Capital’s close on Thursday of RM7.05.
Analysts say the premium could be due to the shares being the controlling block and a high price tag laid by Syed Mokhtar. As at end September last year, EON Capital had a net tangible asset per share of about RM4.29.
Industry sources say the tycoon had placed a price tag of RM9 for the shares, which had put off many buyers previously.

What say you?

Again, I find it incredible that our financial news media is able to obtain such sources of news.

And I wonder if EON Capital will deny the story.

Look at all the recent trend of events.

News media published news based on sources, stock goes up, company gets querried by SC, company denies, stock goes down.

Nice trend, eh?

Somehow, i wonder why our newsmedia aren't getting querried at all.

Don't you ever wonder?